Rosling (1989), one of the classic papers in inventory theory, studies an assembly system with stochastic demand. Under the condition that the initial state of the system possesses a certain property referred to as "long-run balance," the optimal policy is characterized as a balanced echelon...

We study an assembly system with stochastic demand. This is the model studied in Rosling (1989), one of the classic papers in inventory theory, where the optimal policy is characterized as a balanced echelon base-stock policy, assuming that the initial state of the system possesses a certain...