This paper examines static and dynamic policies for replenishing and allocating inventories amongst N retailers located along a fixed delivery route. Each retailer faces independent, normally-distributed period demand and incurs a proportional holding or backorder cost on end-of-period...

The authors are indebted to Professor Andrew Szendrovits of McMaster University for pointing out that [Szendrovits, A. Z. A comment on "Optimal and system myopic policies for production/inventory assembly systems". Management Science, this issue.] the definition of echelon holding cost in...