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

Axsäter, Sven LU (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:
author
organization
publishing date
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 Inst.for Operations Res.and the Management Sciences
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
2025-10-14 11:33:11
@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 Inst.for Operations Res.and the Management Sciences}},
  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}},
}