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Multi-Echelon Systems: Structures and Ordering Policies

  • Sven AxsäterEmail author
Chapter
  • 4.1k Downloads
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 225)

Abstract

So far we have considered a single installation. In practice, though, it is also common to see multi-stage, or multi-echelon, inventory systems, where a number of installations are coupled to each other. For example, when distributing products over large geographical areas, many companies use an inventory system with a central warehouse close to the production facility and a number of local stocking points close to the customers in different areas. Similarly, in production, stocks of raw materials, components, and finished products are coupled to each other. To obtain efficient control of such inventory systems it is necessary to use special methods that take the connection between different stocks into account. In Chaps. 8–10 we will show when and how such methods can be used.

Keywords

Safety Stock Inventory Position Reorder Point Material Requirement Planning Central Warehouse 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Supplementary material

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  1. 1.Department of Industrial Management & LogisticsLund UniversityLundSweden

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