NDLI: One-for-one period policy in a two-echelon inventory system with poisson demand and constraint on total lost sales

Content Provider	IEEE Xplore Digital Library
Author	Haji, R. Haji, B.
Copyright Year	2009
Description	Author affiliation: Department of Industrial Engineering, Sharif University of Technology, Azadi Ave., P.O.Box 11155-9414, Tehran, Iran (Haji, R.; Haji, B.)
Abstract	In this paper we consider a two- echelon inventory system consisting of one supplier and a number of retailers with independent Poisson demand. Unsatisfied demands in retailers are lost and it is assumed that there is a constraint on total lost sales for the system. Each retailer applies a new ordering policy called one-for-one-period ordering policy for its inventory control. In this ordering policy the order size is equal to one and the time interval between any two consecutive orders is fixed. Thus, the supplier faces a uniform and deterministic demand originated from each retailer and applies one for one ordering policy in response to orders received from all retailers. For this system we derive the total cost function per unit time and show that it is convex. Then, we obtain the optimal time intervals between any two consecutive orders for all retailers which minimizes this total cost function.
Starting Page	74
Ending Page	77
File Size	606871
Page Count	4
File Format	PDF
ISBN	9781424435401
DOI	10.1109/SOLI.2009.5203907
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2009-07-22
Publisher Place	USA
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Investments Supply chains Industrial engineering Cost function Inventory control Control systems Marketing and sales Steady-state Performance analysis Centralized control
Content Type	Text
Resource Type	Article

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