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Title of Journal: J Cent South Univ

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Abbravation: Journal of Central South University

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Springer Berlin Heidelberg

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DOI

10.1007/bf02198619

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2227-5223

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Twoechelon inventory model with service level con

Authors: Guo Li Xu Guan Mengqi Liu Miyuan Shan
Publish Date: 2013/11/13
Volume: 20, Issue: 11, Pages: 3324-3333
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Abstract

The decisionmaking and optimization of twoechelon inventory coordination were analyzed with service level constraint and controllable lead time sensitive to order quantity First the basic model of this problem was established and based on relevant analysis the original model could be transformed by minimax method Then the optimal order quantity and production quantity influenced by service level constraint were analyzed and the boundary of optimal order quantity and production quantity was given According to this boundary the effective method and tactics were put forward to solve the transformed model In case analysis the optimal expected total cost of twoechelon inventory can be obtained and it was analyzed how service level constraint and safety factor influence the optimal expected total cost of twoechelon inventory The results show that the optimal expected total cost of twoechelon inventory is constrained by the higher constraint between service level constraint and safety factorFoundation item Project71102174 71372019 supported by the National Natural Science Foundation of China Project9123028 supported by the Beijing Natural Science Foundation of China Project20111101120019 supported by the Specialized Research Fund for Doctoral Program of Higher Education of China Project11JGC106 supported by the Beijing Philosophy Social Science Foundation of China ProjectsNCET100048 NCET100043 supported by the Program for New Century Excellent Talents in University of China Project2010YC1307 supported by Excellent Young Teacher in Beijing Institute of Technology of China

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