Loading...
Please wait, while we are loading the content...
Similar Documents
The (r,Q) control of a periodic-review inventory system with continuous demand and lost sales
| Content Provider | Semantic Scholar |
|---|---|
| Author | Johansen, Søren Hill, Roger M. |
| Copyright Year | 2000 |
| Abstract | Abstract In this paper we consider a periodic review inventory model with lost sales during a stockout and with the constraint that at most one replenishment order may be outstanding at any time. Demands in successive review periods are independent, identically distributed variables from a continuous distribution. The fixed lead time is an integral number of review periods. We explore control policies of the (r,Q) type – that is a replenishment order of size Q is placed when the inventory position (stock in hand plus stock on order) falls to or below the re-order level r. We use asymptotic renewal theory results to estimate the `undershoot’ of the re-order level r and also to estimate the cycle stockholding cost (which turns out to take a relatively simple form). Based on these approximations we set out a policy improvement solution methodology and illustrate this with some numerical examples for which demand is normally distributed. These numerical examples suggest that a relatively simple approach, based on the economic order quantity, can provide results which are very close to optimal. |
| Starting Page | 279 |
| Ending Page | 286 |
| Page Count | 8 |
| File Format | PDF HTM / HTML |
| DOI | 10.1016/S0925-5273(00)00051-7 |
| Volume Number | 68 |
| Alternate Webpage(s) | http://directory.umm.ac.id/Data%20Elmu/jurnal/I/International%20Journal%20of%20Production%20Economics/Vol68.Issue3.Dec2000/2232.pdf |
| Alternate Webpage(s) | https://doi.org/10.1016/S0925-5273%2800%2900051-7 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
