Abstract

In this paper we present a framework for examining the effects of information sharing and system cooperation in a distribution system, with random ordering leadtime. The system consists of a depot and several retailers. The depot is not allowed to hold any inventory. Regarding the two major decisions in a depot problem, we claim that different patterns of information sharing can be considered in replenishment decisions and different modes of cooperation can be considered in allocation decisions. We proposed to model the leadtime uncertainty as a finite-state Markov Chain.

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