A two-echelon inventory problem with recoverable items

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2002

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Tavşancı, Levent

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In this study, a two-echelon inventory system with one-for-one replenishments for a single type of recoverable item is considered. The inventory is reviewed continuously while demand occurs with exponential failure rates at the lower echelon. The replenishments for the backordering bases are supplied either from the central depot or from a neighboring base via lateral transshipments. The effects of incorporating a new inventory control variable (hold back level, H) on the emergency lateral transshipments that limits the extent of the lateral supply between IIIbases are investigated. Given the stock levels of the locations and the limiting parameter for the emergency lateral transshipments (ELTs) as the decision variables, two Markov models are used to determine the fractions of backorder situations and the lateral transshipments at the bases by an approximate decomposition scheme. A numerical example is provided in order to observe the effects of the proposed method.

Subject Keywords

Multi-echelon inventory system, Recoverable item, Lateral transshipments, Markov model

URI

https://hdl.handle.net/11511/13189

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Graduate School of Natural and Applied Sciences, Thesis

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Citation Formats

L. Tavşancı, “A two-echelon inventory problem with recoverable items,” M.S. - Master of Science, Middle East Technical University, 2002.