Abstract
In the previous paper, we presented an algorithm for determining the potimal inventory levels by using the concept of marginal profit function in One-item N-stage Series-type inventory model with storage constraints. In this paper, M-item 2-stage inventory model is discussed. First, we introduce the optimal conditions at each stock point named "equilibrium condition of marginal profit per unit-storage-constraint." Next, by using these conditions, we show that the problem of maximizing the expected profit function under constraints is able to be treated as the problem of solving the simultaneous equations.
