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Faculty Selected Works of Qiaohai (Joice) Hu
Article
Echelon Base-stock Policies are Financially Sub-optimal
Operations Research Letters (2007)
  • Joice (Qiaohai) Hu, University of Missouri-St. Louis
  • Matthew J. Sobel, Case Western Reserve University
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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.
Disciplines
Publication Date
September, 2007
DOI
10.1016/j.orl.2006.11.001
Citation Information
Joice (Qiaohai) Hu and Matthew J. Sobel. "Echelon Base-stock Policies are Financially Sub-optimal" Operations Research Letters Vol. 35 Iss. 5 (2007) p. 561 - 566
Available at: http://works.bepress.com/joiceqiaohai-hu/10/