Heuristic Coordination of Decentralized Inventory Systems Using Induced Backorder Costs

In this paper, we investigate a one‐warehouse multiple‐retailer system, where the inventory control decisions are coordinated using a near optimal induced backorder cost, β*. All installations use continuous review installation‐stock (R, Q) policies. The analysis builds on an approximation model where the stochastic warehouse delays are replaced by their correct averages. The contributions include insights as to how β* is influenced by system parameters, and the determination of simple closed form β* estimates. The latter offering a practical means to achieve coordinated control of large size systems.     

Unemployment and Monetary Integration: On the relevance of wage-formation characteristics in a target-zone regime versus an irrevocably fixed exchange-rate regime

Abstract. This paper examines the relevance of wage-formation characteristics for the evolution of unemployment, comparing the current semi-fixed exchange rate system (EMS, described by a target zone regime) with an irrevocably fixed exchange-rate regime (EMU). The topic is analyzed in a model which emphasizes the working of the labour market and distinguishes between three types of shocks (a shock to money demand, goods demand and goods supply). The analysis points out that the impact of wage formation on unemployment depends crucially on the kind of shock as well as the exchange-rate regime in force.