Designing an Inventory Model of Parallel-Type Distribution System

A one-upper level warehouse n-Iower level retailer inventory distribution model is discussed. This paper presents the parallel-type inventory structure using an order-up-to-level invertory control system for analyzing the approximation of the expected units back ordered and the measure of service. We find that the total expected backorder units in system can substitute the expected back orders in the last two periods for the expected back orders in total periods. The rate of total expected back orders which is the measure of disservice, is given by dividing the improved units of total expected backorder into the total demand during an order cycle. The average annual total cost in system is obtained by considering the results, but from the viewpoint of this study the cost analysis is not described.