Volume 23, Issue 4 (IJIEPR 2012)                   IJIEPR 2012, 23(4): 285-290 | Back to browse issues page

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Hajiaghaei-Keshteli M, Aminnayeri M. The Cost Function for a Two-warehouse and Three-Echelon Inventory System. IJIEPR 2012; 23 (4) :285-290
URL: http://ijiepr.iust.ac.ir/article-1-450-en.html
The Cost Function for a Two-warehouse and Three-Echelon Inventory System
Mostafa Hajiaghaei-Keshteli1 , Majid Aminnayeri 2
1- Department of Industrial Engineering and Management Systems, Amirkabir University of Technology, Tehran, Iran
2- Department of Industrial Engineering and Management Systems, Amirkabir University of Technology, Tehran, Iran , mjnayeri@aut.ac.ir
Abstract:   (6481 Views)
In this paper, the cost function for a three-echelon inventory system with two warehouses is derived. Transportation times are constant and retailers face independent Poisson demand. Replenishments are one-for-one. The lead time of a retailer is determined not only by the constant transportation time but also by the random delay incurred due to the availability of stock at the warehouses. We consider two warehouses in the second echelon which may leads to having more delays which were incurred in the warehouses and facing different behaviors of independent Poisson demands. Because the replenishment policy is base stock, the obtained function can also be used in different ordering policies to compute the inventory holding and shortage costs.
Keywords: Three-echelon inventory system, One-for-one Replenishments, Poisson Demands
Full-Text [PDF 309 kb]   (2824 Downloads)    
Type of Study: Research | Subject: Logistic & Apply Chain
Received: 2012/07/1 | Accepted: 2014/07/21 | Published: 2014/07/21
Cited by [1] [PDF 97 KB]  (540 Download)
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