Operations Workshop 2006
Base Stock Policies"
In this presentation we discuss a class of
policies that allows for a
rigorous performance analysis of periodic review multi-item,
multi-echelon inventory systems with constant lead times:
base stock (SBS) policies. Assuming no lot sizing restrictions,
divergent and convergent systems these policies are optimal:
order-up-to-level policies. For general structures and/or
lot sizing constraints there is no clear reference with respect
performance. Exploratory research based on comparison with
scheduling concepts indicates that SBS policies perform well.
the general principles of SBS policies, structural insights
managerial insights. The managerial insights have been derived
computation of close-to-optimal SBS policies. We discuss optimality
conditions that enable efficient computation of these policies.
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