Estimating stock levels in periodic review inventory systems

Estimating stock levels in periodic review inventory systems

Calculating the mean physical stock in a simple periodic review inventory system seems to be straightforward. However, the standard approximate expressions appear to yield inaccurate results, especially for low service levels. Low service levels are frequently encountered at intermediate nodes in cost-optimal solutions for multiechelon systems. In this note, we present an improved approximate m...

A Periodic-Review Base-Stock Inventory System with Sales Rejection

We consider a system in which an order is placed every T periods to bring the inventory position up to the base stock S. We accept demand until the inventory position reaches a sales rejection threshold M. Our objective is to find the optimal values of S and M which minimize the long-run average cost per period. We establish the stationary distribution of our system and develop structural prope...

A Periodic Review Base Stock Inventory System with Sales

Order splitting under periodic review inventory systems

Most research on order splitting have focused on the reduction of safety stock in the multiple sourcing setting. Moreover, all works study the use of order splitting for the continuous review inventory systems. In this paper, we investigate the possibility of the multiple-delivery arrangement in the sole sourcing environment. In addition, we concentrate on the reduction of cycle stock for perio...

Fill rate of single-stage general periodic review inventory systems

We consider a single-stage inventory system supplying external demands and receiving stocks from an ample supply. Time is divided into periods of …xed length; a period can be a day or a week depending on the situation. In each period, demands arrive and are either …lled or backlogged. The system operates under a general periodic-review base-stock policy. Under this policy, the inventory positio...