Note: Optimal Policies for Serial Inventory Systems under Fill Rate Constraints
(2003) In Management Science 49(2). p.247-253- Abstract
- 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/636994
- author
- Axsäter, Sven LU
- organization
- publishing date
- 2003
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Management science, Studies, Mathematical models, Inventory control, Optimization
- in
- Management Science
- volume
- 49
- issue
- 2
- pages
- 247 - 253
- publisher
- Informs
- external identifiers
-
- scopus:0037300034
- ISSN
- 0025-1909
- DOI
- 10.1287/mnsc.49.2.247.12746
- language
- English
- LU publication?
- yes
- id
- 001f8cb7-a1cf-4353-a9f0-28520ebd30d3 (old id 636994)
- date added to LUP
- 2016-04-01 12:15:05
- date last changed
- 2023-01-03 05:54:48
@article{001f8cb7-a1cf-4353-a9f0-28520ebd30d3, abstract = {{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.}}, author = {{Axsäter, Sven}}, issn = {{0025-1909}}, keywords = {{Management science; Studies; Mathematical models; Inventory control; Optimization}}, language = {{eng}}, number = {{2}}, pages = {{247--253}}, publisher = {{Informs}}, series = {{Management Science}}, title = {{Note: Optimal Policies for Serial Inventory Systems under Fill Rate Constraints}}, url = {{http://dx.doi.org/10.1287/mnsc.49.2.247.12746}}, doi = {{10.1287/mnsc.49.2.247.12746}}, volume = {{49}}, year = {{2003}}, }