Optimal base-stock policy for the inventory system with periodic review, backorders and sequential lead times. Issue 1 (3rd July 2008)

• Record Type: Journal Article
• Authors: Johansen, Soren Glud; Thorstenson, Anders
• Is Part Of: International journal of inventory research. Volume 1:Issue 1(2008)
• Page Start: 44
• Page End: 52
• Publication Date: 2008-07-03
• Subjects: inventory control -- optimisation -- periodic review -- sequential lead times -- single echelon -- single item -- stochastic demand -- base stock policy -- backorders -- extended lead time -- performance measures -- optimal base stock; Inventories -- Periodicals; Inventories -- Mathematical models -- Periodicals; Inventory control -- Periodicals; 658.787
• Languages: English
• ISSNs: 1746-6962

Abstract

We extend well-known formulae for the optimal base stock of the inventory system with continuous review and constant lead time to the case with periodic review and stochastic, sequential lead times. Our extension uses the notion of the 'extended lead time'. The derived performance measures are exact for Poisson demands.