This paper concerns with a multi-echelon inventory/distribution system considering one-
warehouse and N-retailers. The retailers are replenished from the warehouse. We assume
that the demand rate at each retailer is known. The problem consists of determining the
optimal reorder policy which minimizes the overall cost, that is, the sum of the holding and
replenishment costs. Shortages are not allowed and lead times are negligible. We study two
situations: when the retailers make decisions independently and when the retailers are …