A Second Look at Hanssmann's Inventory Control Model with Special Reference to the Central Store/Sub Store Problem

In a paper published in Opns. Res. 7, 483–498 (1959), F. Hanssmann puts forward a model for inventory control of single stores, unbranching chains of stores, and finally branching chains of stores. In particular the model can be used for the problem of a central store supplying sub stores. Hanssmann's model is unrivalled in its versatility, but is derived in an intuitive, heuristic manner, and is open to some criticism on these grounds. The present author has tried to correct these deficiencies and in most cases has verified Hanssmann's intuition. A few of Hanssmann's results appear to be inaccurate, however, and alternatives are put forward to replace these.