International Conference on Information Management, Innovation Management and Industrial Engineering
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Abstract

Inventory strategy of two-echelon systems can divide into: ordering tactic and delivery tactic. This paper concentrated on the delivery tactic, in which have to study the relationship between safety stock and transportation. So after analyzing the effects of inventory centralization or decentralization on safety stock and transportation, we try to find the mathematic formulation express the relationship between the safety stock and transshipment in two-echelon systems.
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