After the failed experiment of Prohibition in the early 20th century, the 21st Amendment was passed to repeal the 18th Amendment as well as grant the power of alcohol regulation to the states. Within this power is the three-tier distribution system, where alcohol suppliers are required to sell their products to a wholesaling company, who later sell to a retailer. This system makes alcohol easy to regulate as well as encourages competition within the alcohol market. Today however, companies are finding ways through new legislation and court cases to bypass this three-tier system by shipping their products directly. This gives these companies a competitive advantage against others that have to sell their products through the three-tier system, and as a result the three-tier system is slowly starting to fade away.

In this master thesis study, new inventory control mechanisms are developed for the repairables in Nedtrain. There is a multi-item, multi echelon system with a continuous review and one for one replenishment policy and there are different demand supply options in each control mechanism. There is an aggregate mean waiting time constraint in each local warehouse and the objective is to minimize the total system cost. The base stock levels in each warehouse are determined with an approximation method. Then different demand supply options are compared with each other.