Optimal inventory policies in decentralized supply chains

Xiaoming Li

International Journal of Production Economics, 2010, vol. 128, issue 1, 303-309

Abstract: This paper studies the inventory behavior of autonomous and self-serving firms in a decentralized retailer-manufacturer serial supply chain. We first analytically characterize the optimal inventory policies for each firm both with and without information sharing, revealing an inherent simple structure of optimal inventory behavior: replenishments are triggered by ultimate customer demand directly. We then consider various extensions: (1) N-stage serial systems, (2) batch ordering policies, (3) fixed setup costs, and (4) Markovian customer demand.

Keywords: Inventory; Supply; chain; management; Demand; evolution (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:128:y:2010:i:1:p:303-309

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