Echelon base-stock policies are financially sub-optimal

Qiaohai (Joice) Hu; Matthew J. Sobel

doi:10.1016/j.orl.2006.11.001

Echelon base-stock policies are financially sub-optimal

Qiaohai (Joice) Hu, Matthew J. Sobel

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

26 Citations (Scopus)

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. © 2006 Elsevier B.V. All rights reserved.

Original language	English
Pages (from-to)	561-566
Journal	Operations Research Letters
Volume	35
Issue number	5
DOIs	https://doi.org/10.1016/j.orl.2006.11.001
Publication status	Published - Sept 2007
Externally published	Yes

Research Keywords

Bankruptcy
Inventory
Liquidity
Production

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10.1016/j.orl.2006.11.001

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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. {\textcopyright} 2006 Elsevier B.V. All rights reserved.",

keywords = "Bankruptcy, Inventory, Liquidity, Production",

author = "Hu, {Qiaohai (Joice)} and Sobel, {Matthew J.}",

year = "2007",

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doi = "10.1016/j.orl.2006.11.001",

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AU - Hu, Qiaohai (Joice)

AU - Sobel, Matthew J.

PY - 2007/9

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N2 - 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. © 2006 Elsevier B.V. All rights reserved.

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. © 2006 Elsevier B.V. All rights reserved.

KW - Bankruptcy

KW - Inventory

KW - Liquidity

KW - Production

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UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-34547575795&origin=recordpage

U2 - 10.1016/j.orl.2006.11.001

DO - 10.1016/j.orl.2006.11.001

M3 - RGC 21 - Publication in refereed journal

SN - 0167-6377

VL - 35

SP - 561

EP - 566

JO - Operations Research Letters

JF - Operations Research Letters

IS - 5

ER -

Echelon base-stock policies are financially sub-optimal

Abstract

Research Keywords

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