Questions tagged [base-stock]

For questions related to inventory policies in which we "order up to" a given level, called the base-stock level. Questions may related to base-stock policies, base-stock levels, or optimization thereof.

Filter by
Sorted by
Tagged with
8
votes
0answers
81 views

Is a base-stock policy optimal for a serial inventory system with upstream stockout costs?

In a serial inventory system without fixed costs, an echelon base-stock policy is known to be optimal if there is no stockout cost at any stage except the last stage. (This was proved for finite-...