Heuristic Computation of Periodic-Review Base Stock Inventory Policies

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

Periodic review, push inventory policies for remanufacturing

Sustainability has become a major issue in most economies, causing many leading companies to focus on product recovery and reverse logistics. This research is focused on product recovery, and in particular on production control and inventory management in the remanufacturing context. We study a remanufacturing facility that receives a stream of returned products according to a Poisson process. ...

Leadtime management in a periodic-review inventory system: A state-dependent base-stock policy

We examine a single-item, periodic-review inventory system with stochastic leadtimes, in which a replenishment order is delivered immediately or one period later, depending probabilistically on costly effort. The objective is to determine an inventory policy and an effort-choice strategy that minimize the expected total costs. Our analytical and computational analysis suggests that (i) a state-...

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...