A single supplier–single retailer system with an order-up-to level inventory policy

We consider a two-level vendor-managed system in which external demand occurs only at a retailer and a supplier replenishes the retailer employing an order-up-to SS policy over TT periods. We present an O(T3)O(T3) algorithm to coordinate the system when SS is known. We also show that SS can be optimized in O(aT3)O(aT3) time for an input parameter aa.