Optimal Inventory Policy for Two-Echelon Assembly Systems

다국어 초록 (Multilingual Abstract)

Large scale multi-echelon assembly systems comprise a hierarchy of facilities where each facility requires inputs from a number of immediate predecessor stages, and supplies, in turn, one immediate successor. This paper develops an inventory model for two-echelon assembly systems in which an end product is assembled from many components, each of which is ordered from an external supplier. Only the end product has final demand, which is assumed to be known and constant over time. Under the assumption that replenishments of each component and production setups of end product occur periodically, characteristics of the optimal operating policy are described. An iterative solution procedure is presented to find optimal operating policy variables.