| Article ID: | iaor20082893 |
| Country: | Netherlands |
| Volume: | 35 |
| Issue: | 5 |
| Start Page Number: | 561 |
| End Page Number: | 566 |
| Publication Date: | Sep 2007 |
| Journal: | Operations Research Letters |
| Authors: | Sobel Matthew J., Hu Qiaohai (Joice) |
We study a Clark and Scarf multi-echelon inventory model with the objective of optimizing the expected present value of dividends. A counterexample shows that generally there is no optimal echelon base-stock policy if there are financial constraints and two or more echelons.