Technical Note ---Capacitated Serial Inventory Systems: Sample Path and Stability Properties Under Base-Stock Policies

Woonghee Tim Huh (), Ganesh Janakiraman () and Mahesh Nagarajan ()
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Woonghee Tim Huh: Operations and Logistics Division, Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada
Ganesh Janakiraman: School of Management, The University of Texas at Dallas, Richardson, Texas 75080-3021
Mahesh Nagarajan: Operations and Logistics Division, Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada

Operations Research, 2010, vol. 58, issue 4-part-1, 1017-1022

Abstract: We study a periodically reviewed multiechelon serial inventory system with a capacity constraint on the order quantity at every stage. Under echelon base-stock policies, we demonstrate a simple sample-path result that maps the echelon shortfalls in the serial system to the shortfalls of suitably defined single-stage systems. Because the shortfall processes of single-stage systems are well understood, our result allows us to reinterpret results in the literature on the stability and regeneration times of such multiechelon systems in a simpler fashion with weaker assumptions.

Keywords: stochastic inventory theory; capacitated systems (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (6)

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