In the paper by Graves and Schwarz [Graves, Stephen C., Leroy B. Schwarz. 1977. Single cycle continuous review policies for arborescent production/inventory systems. Management Sci. 23 (5, January) 529–540.], we observed an error in their discussion of optimal policies for the one warehouse-m retailer system. Specifically, Theorem 1, which states that the optimal stationary policy is a single-cycle policy, is incorrect.
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Muckstadt et al. (1978) studied this question.
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