Multiple Triggers and Lot Sizes

This paper gives a way of handling the inventory decisions as to when to make more (trigger point) and how much to make (lot size) of products that are stocked in more than one location. Many factory warehouse systems consist of a factory, a central warehouse, and regional warehouses. Triggering a production run of a joint lot depends on the inventory situation at each warehouse. Models are developed for the joint triggering, and joint lot size and its distribution, numerical examples and graphs are given for the trigger, along with references for the numerical methods. The models in the paper are for a simplified system, and references are given for extension of the theory.