Multi-Level Inventory Systems with Stochastic Demand

When products are distributed over a large region it is common to have several local stocking locations close to the final customers. These local inventories are, in turn, customers of a higher level stocking site, for example a central warehouse. The resulting inventory system (see Figure 1) is denoted a distribution system or an arborescent system: Open image in new window Figure 1 Two-level distribution system

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