Note: Optimal Policies for Serial Inventory Systems under Fill Rate Constraints

Summary, in English

A continuous review serial production/distribution system with discrete compound Poisson demand for the end product is considered. Unmet demand is back-ordered. Production/transportation times are constant. All deliveries from one stage to the next must be multiples of given batch sizes. The problem of minimizing the holding costs under a fill rate constraint is considered. Using recent results by Chen (2000), it is shown that under a set of restricted but plausible assumptions, the optimal policy is an echelon stock multistage (R, nQ) policy with one of the reorder points varying over time. A simple procedure for the determination of the optimal policy is provided.

• Författare: Sven Axsäter
• Avdelning/ar: Produktionsekonomi
• Publiceringsår: 2003
• Språk: Engelska
• Sidor: 247-253
• Publikation/Tidskrift/Serie: Management Science
• Volym: 49
• Issue: 2
• Länkar: http://dx.doi.org/10.1287/mnsc.49.2.247.12746
• Dokumenttyp: Artikel i tidskrift
• Förlag: Informs
• Ämne: Transport Systems and Logistics
• Nyckelord: Management science; Studies; Mathematical models; Inventory control; Optimization
• Status: Published
• ISBN/ISSN/Övrigt: ISSN: 0025-1909