Abstract: We consider a distribution system consisting of one supplier and multiple retailers managed under periodic-review policy over an infinite time horizon.We study the optimal replenishment and allocation policy, and compare the expected cost/cycle for the system and for each individual retailer under three different levels information visibility: the high information visibility scenario, the medium information visibility scenario, and the low information visibility scenario.We show that system expected cost/cycle is the lowest under the high information visibility scenario.However, depending on the vehicle travel times and customer-dem and variances, either the medium or low information visibility scenario has the second-lowest system expected cost/cycle.Further, we show that whether individual retailers benefit from higher levels of information visibility depends on their position on the route, vehicle travel times and custome-rdemand variances.

Key words: supply chain management, distribution system, information visibility