Figure 4
The figure has two panels arranged horizontally with a common time axis. The caption indicates the case where the supplier delivery interval is longer than the warehouse replenishment interval. In the left panel for suppliers, the inventory level follows a repeating sawtooth pattern: inventory increases during replenishment to a high level and then declines steadily with consumption before the next replenishment. In the right panel for a single warehouse, the inventory level changes in a stepwise manner: it drops as inventory is depleted, may remain low or at zero between replenishments, and then jumps back upward when replenished. A legend distinguishes the inventory level curve and uses different markers to denote the supplier delivery interval and the third-party service provider delivery interval. Inventory levels when . Source(s): Authors' own creation