Notes: Installation vs. Echelon Stock Policies for Multilevel Inventory Control

Published Online:https://doi.org/10.1287/mnsc.39.10.1274

This paper compares installation and echelon stock policies for multilevel inventory control. The major results are for serial and assembly systems. For (Q, r)-rules, echelon stock policies are, in general, superior to installation stock policies. A Kanban-policy is identified as a restricted type of installation stock (Q, r)-policy.

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