Initiation of an Inventory Control System when the Demand Starts at a Given Time

Sven Axsäter

Research output: Contribution to journalArticlepeer-review

Abstract

This paper considers a single-echelon, continuous review, inventory system with a warehouse facing compound Poisson customer demand. The replenishment lead-time is constant. Demand that cannot be met directly is backordered. There are standard linear holding and backorder costs but no set-up or ordering cost. It is assumed that the demand process starts at a certain given time. Consequently, before the demand starts, the lead-time demand is lower than in steady state. This affects the optimal ordering policy. We derive the optimal ordering policy under these assumptions.
Original languageEnglish
Pages (from-to)553-556
JournalInternational Journal of Production Economics
Volume143
Issue number2
DOIs
Publication statusPublished - 2013

Subject classification (UKÄ)

  • Transport Systems and Logistics

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