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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.
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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
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
2008-02-04 12:25:14
date last changed
2018-01-07 05:58:36
@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},
  keyword      = {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},
  volume       = {49},
  year         = {2003},
}