@conference{Gaalman2009, author = {G. Gaalman and S.M. Disney}, title = {A new inventory policy for a two echelon supply chain}, booktitle = {16th EurOMA Annual Conference}, year = {2009}, pages = {10 pages}, address = {G\"oteburg, Sweden}, month = {June 14th–17th}, url = {https://www.researchgate.net/publication/350610492_A_new_inventory_policy_for_a_two_echelon_supply_chain}, abstract = {Using a (defined) set of inventory balance equations and an objective function we find two optimal linear replenishment policies for a two echelon supply chain. The first, locally optimal policy is the so-called echelon order-up-to policy. The second, globally optimal policy, is a novel inventory control policy we have not seen in the literature before. We show that it economically dominates the locally optimal policy. There are arbitrary lead-times at each echelon and the demand process is assumed to be ARMA(p,q), thus our investigation is of a rather general nature.} }