Centralized planning models for multi-echelon inventory systems under uncertainty

In this chapter we discuss planning models for multi-echelon systems which allow for uncertain and nonstationary demand and lead time processes. We confine ourselves to so-called PUSH systems with a central decision maker, who possesses continuously or periodically updated information about all inventories of all products at all relevant facilities and production stages; all replenishment decisions in the system are determined centrally on the basis of this information. The next chapter deals with planning models for systems with decentralized control (PULL systems), in which some replenishment decisions are made by local managers on the basis of local information only.