EconPapers    
Economics at your fingertips  
 

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 ().

 
Page updated 2025-03-19
Handle: RePEc:ids:ijisen:v:35:y:2020:i:4:p:482-508