We show that if the analysis of the model of Lee and Tang used standard deviation rather than variance, some nonintuitive predictions of their analysis would be eliminated.

We incorporate information flow between a supplier and a retailer in a two-echelon model that captures the capacitated setting of a typical supply chain. We consider three situations: (1) a traditional model where there is no information to the supplier prior to a demand to him except for past...

This paper demonstrates optimal policies for capacitated serial multiechelon production/inventory systems. Extending the Clark and Scarf (1960) model to include installations with production capacity limits, we demonstrate that a modified echelon base-stock policy is optimal in a two-stage...

Problem definition: Shipment consolidation is commonly used to take advantage of the economies of scale by avoiding some of the shipping costs. However, when pending current orders are consolidated with future orders it may require more expensive expedited shipment in order to meet shorter...