Angelus, Alexandar - In: Management Science 57 (2011) 12, pp. 2145-2162
We consider a finite-horizon, multiechelon inventory system in which the surplus of stock can be sold (i.e., disposed) in the secondary markets at each stage in the system. What are called <i>nested echelon order-up-to policies</i> are shown to be optimal for jointly managing inventory replenishments...