Note: Optimal Policies for Serial Inventory Systems under Fill Rate Constraints

Sven Axsäter

doi:10.1287/mnsc.49.2.247.12746

Note: Optimal Policies for Serial Inventory Systems under Fill Rate Constraints

Sven Axsäter

Production Management

Research output: Contribution to journal › Article › peer-review

Abstract

A continuous review serial production/distribution system with discrete compound Poisson demand for the end product is considered. Unmet demand is back-ordered. Production/transportation times are constant. All deliveries from one stage to the next must be multiples of given batch sizes. The problem of minimizing the holding costs under a fill rate constraint is considered. Using recent results by Chen (2000), it is shown that under a set of restricted but plausible assumptions, the optimal policy is an echelon stock multistage (R, nQ) policy with one of the reorder points varying over time. A simple procedure for the determination of the optimal policy is provided.

Original language	English
Pages (from-to)	247-253
Journal	Management Science
Volume	49
Issue number	2
DOIs	https://doi.org/10.1287/mnsc.49.2.247.12746
Publication status	Published - 2003

Subject classification (UKÄ)

Transport Systems and Logistics

Free keywords

Management science
Studies
Mathematical models
Inventory control
Optimization

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10.1287/mnsc.49.2.247.12746

Cite this

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abstract = "A continuous review serial production/distribution system with discrete compound Poisson demand for the end product is considered. Unmet demand is back-ordered. Production/transportation times are constant. All deliveries from one stage to the next must be multiples of given batch sizes. The problem of minimizing the holding costs under a fill rate constraint is considered. Using recent results by Chen (2000), it is shown that under a set of restricted but plausible assumptions, the optimal policy is an echelon stock multistage (R, nQ) policy with one of the reorder points varying over time. A simple procedure for the determination of the optimal policy is provided.",

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KW - Management science

KW - Studies

KW - Mathematical models

KW - Inventory control

KW - Optimization

U2 - 10.1287/mnsc.49.2.247.12746

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JO - Management Science

JF - Management Science

IS - 2

ER -

Note: Optimal Policies for Serial Inventory Systems under Fill Rate Constraints

Abstract

Subject classification (UKÄ)

Free keywords

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