A GENERAL FRAMEWORK FOR MULTI-ECHELON INVENTORY AND PRODUCTION CONTROL PROBLEMS (ARBORESCENCE SYSTEMS, MULTI-INDENTURE, STOCHASTIC LEADTIMES)

We propose a general method for the analysis of multi-echelon inventory systems. This method is based on a decomposition approach. Each inventory holding facility within the system is considered separately as a single-location inventory problem. To facilitate this analysis we develop a technique for the calculation of steady-state distributions in single-location inventory systems with stochastic leadtimes.;Several applications of these items to systems with (R,Q) inventory policies are described. Particular emphasis is placed on one-for-one replenishment systems and two-echelon inventory systems with deterministic delays for delivery of orders.