A single supplier-single retailer system with an order-up-to level inventory policy

We consider a two-level vendor-managed system in which external demand occurs only at a retailer and a supplier replenishes the retailer employing an order-up-to S policy over T periods. We present an O(T-3) algorithm to coordinate the system when S is known. We also show that S can be optimized in O(aT(3)) time for an input parameter a. (c) 2008 Elsevier B.V. All rights reserved.