Mathematical Methods of Operations Research

, Volume 79, Issue 3, pp 293–326 | Cite as

The stochastic guaranteed service model with recourse for multi-echelon warehouse management

  • Jörg Rambau
  • Konrad Schade
Original Article


The guaranteed service model (GSM) computes optimal order-points in multi-echelon inventory control under the assumptions that delivery times can be guaranteed and the demand is bounded. Our new stochastic guaranteed service model (SGSM) with Recourse covers also scenarios that violate these assumptions. Simulation experiments on real-world data of a large German car manufacturer show that policies based on the SGSM dominate GSM-policies.


Multi-echelon inventory control Guaranteed service model Stochastic programming Integer linear programming  Real-world application 

Mathematics Subject Classification

MSC 90B05 MSC 90C10 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Universität BayreuthBayreuthGermany
  2. 2.Volkswagen AGWolfsburgGermany

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