Routing and Inventory Allocation Policies in Multi-Echelon Distribution Systems

Abstract

This paper reviews the previous research in the area of logistics systems, especially in the area of the multi-echelon distribution system with stochastic demand. Many researches in this area emphasize the value of real-time information (which is more readily available nowadays by use of EDS or satellite systems) in distribution-related decisions. Also a great deal of efforts has been taken to study the risk-pooling effect of the various distribution policies in the multi-echelon systems. The objectives of this review are two-folded; (1) to help readers to understand the research paradigm in the multi-echelon area, and (2) to help them to find future research topics not yet explored.