Effects of supply disruption on optimal inventory policy: the case of (r, S) continuous review inventory policy
Chirakiat Saithong and
Huynh Trung Luong
International Journal of Industrial and Systems Engineering, 2020, vol. 35, issue 4, 482-508
Abstract:
In this study, we focus on the derivation of an optimal inventory policy to help tackle the supply disruption problem. The main objective of the study is to derive an optimal inventory policy for a retailer who is facing stochastic supply disruption and stochastic demand, operating under a (r, S) continuous review policy so as to minimise the total inventory cost per time-unit. Renewal reward theorem is used to help develop the total inventory cost function which consists of order cost, time-dependent holding and shortage costs in the existence of replenishment lead time. Numerical experiments and sensitivity analyses are then conducted to illustrate the applicability of the developed inventory policy.
Keywords: supply disruption; continuous review inventory policy; stochastic demand; renewal reward process; expected path approach. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.inderscience.com/link.php?id=108550 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ids:ijisen:v:35:y:2020:i:4:p:482-508
Access Statistics for this article
More articles in International Journal of Industrial and Systems Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().