( s, S ) Policies for a Dynamic Inventory Model with Stochastic Lead Times

Richard Ehrhardt
Additional contact information
Richard Ehrhardt: University of North Carolina, Greensboro, North Carolina

Operations Research, 1984, vol. 32, issue 1, 121-132

Abstract: This study analyzes a stochastic lead time inventory model under the assumptions that (a) replenishment orders do not cross in time and (b) the lead time distribution for a given order is independent of the number and sizes of outstanding orders. The study extends the existing literature on the finite-horizon version of the model and yields an intuitively appealing dynamic program that is nearly identical to one that would apply in a transformed model with all lead times fixed at zero. Hence, many results that have been derived for fixed lead time models generalize easily. Conditions for the optimality of myopic base-stock policies, and for the optimality of ( s , S ) policies are established for both finite and infinite planning horizons. The infinite-horizon model analysis is extended by adapting the fixed lead time results for the efficient computation of optimal and approximately optimal ( s , S ) policies.

Keywords: 354 (s; S) policies for stochastic lead time; 362 stochastic inventory lead times (search for similar items in EconPapers)
Date: 1984
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://dx.doi.org/10.1287/opre.32.1.121 (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:oropre:v:32:y:1984:i:1:p:121-132

Access Statistics for this article

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