CENTRALIZED EFFECT ON EXPECTED COSTS IN A MULTI-LOCATION NEWSBOY PROBLEM

This paper deals with a single-period single-product inventory model with several individual sources of demand. It is a multi-location problem with an opportunity for centralization. Two types of inventory system are considered in this paper : the decentralized system and the centralized system. The aim of this paper is to extend Chang and Lin's model by adding the consideration of delay supply product cost to constitute a new inventory model we prove two theorems that include the results of Chang and Lin's model.