Inventory decision in a periodic review inventory model with two complementary products

Abstract Interaction effect across complementary products plays an important role in characterizing the optimal inventory policy. The levels of are interrelated due to interaction between demand streams. In this paper, we consider a periodic review base-stock policy presence two with demands and joint replenishment. Demands modeled by Poisson process any unmet is lost. can be sets one unit each or jointly. If arrival requests jointly not stock, then whole We aim investigate how phenomenon influences period length utilize renewal reward theorem derive explicit expression expected profit rate system. goal determine such that maximized. Enumeration approximation algorithms employed find near-optimal solutions, respectively. algorithm based on scenario independent processes which results for long-run per time leads analytical solutions policies. Our numerical reveal obtained close solutions. Numerical experiences show maximum system achieved if proportion customers increases. Moreover, has significant impact control performance when units lost sales holding costs high, rare low.