Echelon Base-stock Policies are Financially Sub-optimal

Joice (Qiaohai) Hu; Matthew J. Sobel

doi:10.1016/j.orl.2006.11.001

Echelon Base-stock Policies are Financially Sub-optimal

Joice (Qiaohai) Hu, Matthew J. Sobel

University of Missouri-St. Louis

Research output: Contribution to journal › Article › peer-review

Abstract

We study a Clark and Scarf multi-echelon inventory model with the objective of optimizing the expected present value of dividends. A counterexample shows that generally there is no optimal echelon base-stock policy if there are financial constraints and two or more echelons.

Original language	American English
Journal	Operations Research Letters
Volume	35
DOIs	https://doi.org/10.1016/j.orl.2006.11.001
State	Published - Sep 2007

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Business

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title = "Echelon Base-stock Policies are Financially Sub-optimal",

abstract = " We study a Clark and Scarf multi-echelon inventory model with the objective of optimizing the expected present value of dividends. A counterexample shows that generally there is no optimal echelon base-stock policy if there are financial constraints and two or more echelons.",

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AB - We study a Clark and Scarf multi-echelon inventory model with the objective of optimizing the expected present value of dividends. A counterexample shows that generally there is no optimal echelon base-stock policy if there are financial constraints and two or more echelons.

UR - https://www.sciencedirect.com/science/article/pii/S0167637706001258

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DO - 10.1016/j.orl.2006.11.001

M3 - Article

VL - 35

JO - Operations Research Letters

JF - Operations Research Letters

ER -

Echelon Base-stock Policies are Financially Sub-optimal

Abstract

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