Computing demand properties at the wholesale warehouse level

Carl R. Schultz

Naval Research Logistics Quarterly, 1983, vol. 30, issue 1, 37-48

Abstract: Computational formulas are given for the mean, variance, and autocorrelation function of the demand process at an upper‐echelon facility (warehouse). The demand process at the warehouse is induced by the aggregated inventory replenishment processes of N independently operated lower‐echelon facilities (stores) in parallel. Each store, we assume, employs an (s,S) inventory replenishment policy with complete backlogging to satisfy its own random, independently and identically distributed demand. The formulas result from an analysis of the stochastic replenishment process at a single store. Examples of the properties of the demand process at the upper‐echelon facility are presented for several lower‐echelon environments.

Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:wly:navlog:v:30:y:1983:i:1:p:37-48

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