A Two-Echelon Inventory System with Priority Shipments
Published Online:1 Aug 1992https://doi.org/10.1287/mnsc.38.8.1140
Abstract
A two-echelon system for spare parts is analyzed. The system allows the use of priority inventory pooling to expedite service when a stock-out occurs. First, a tractable aggregate model is derived. This model is then disaggregated to approximate the performance of the exact system. Results of computer tests are also presented.
