Abstract
We study the risk pooling problem in a two-location inventory system, and analytically demonstrate that pooling improves the Type-I service levels at both locations. We also present an example showing that pooling may reduce the Type-II service levels at both locations.
Original language | English (US) |
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Pages (from-to) | 96-98 |
Number of pages | 3 |
Journal | Operations Research Letters |
Volume | 40 |
Issue number | 2 |
DOIs | |
State | Published - Mar 2012 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Software
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics
Keywords
- Inventory pooling
- Service level
- Transshipment