Production, Capacity And Material Planning Page 42

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Material Requirements Planning
Multi-Echelon Systems
Multi-echelon inventory
each level is referred as an echelon
“total inventory in the system varies with the number of stocking
points”
Modell (Freeland 1985):
⌧demand is insensitive to the number of stocking points
⌧demand is normally distributed and divided evenly among the stocking
points,
⌧demands at the stocking points are independent of one another
⌧a (Q,R) inventory policy is used
⌧β-Service level (fill rate) is applied
⌧Q is determined from the EOQ formula
Production Management
141

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Parent category: Business