A Revision of the Power Approximation for Computing (s, S) Policies

Richard Ehrhardt and Charles Mosier
Additional contact information
Richard Ehrhardt: School of Business and Economics, University of North Carolina, Greensboro, North Carolina 27412
Charles Mosier: School of Management, Clarkson College, Potsdam, New York 13676

Management Science, 1984, vol. 30, issue 5, 618-622

Abstract: A revision of the Power Approximation for computing (s, S) inventory policies is presented. The revision incorporates modifications which (1) ensure homgeneity in the units chosen to measure demand and (2) ensure the proper limiting behavior of S - s when the variance of demand is extremely small. Computational experience shows that the revision has operating characteristics that are typically within a few percent of optimal, which is nearly as accurate as the original Power Approximation.

Keywords: inventory/production: approximations; inventory/production: periodic review models (search for similar items in EconPapers)
Date: 1984
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.30.5.618 (application/pdf)

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:inm:ormnsc:v:30:y:1984:i:5:p:618-622

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().