Initiation of an inventory control system when the demand starts at a given time

Sven Axsäter

International Journal of Production Economics, 2013, vol. 143, issue 2, 553-556

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.

Keywords: Inventory control; Initiation; Stochastic (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:143:y:2013:i:2:p:553-556

DOI: 10.1016/j.ijpe.2011.05.028

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