A transfer/clearing inventory model under sporadic review

Oded Berman, Dmitry Krass and David Perry

Mathematical Methods of Operations Research, 2003, vol. 57, issue 2, 329-344

Abstract: We consider two locations in tandem of an inventory model, so-called the buffer and the store. The content levels in both locations are controlled simultaneously by transferring inventory from the buffer location to the store location. Under a certain cost function that takes into account the trade-off between the transferal set-up costs, the proportional holding and unsatisfied demand costs, the control policy of “when” and “how much” to transfer is restricted to the case of clearings under conditions of sporadic review. The objective is to find the optimal production rate or the optimal rate of the clearing process in heavy traffic in both locations. The purpose of this study is two-fold: we are interested both in the performance analysis of the relevant cost functionals and also in optimization and sensitivity analysis. Copyright Springer-Verlag Berlin Heidelberg 2003

Keywords: Key words: Clearing; continuous, periodic and sporadic reviews: transferal set-up costs; holding costs; heavy traffic; Martingale, (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1007/s001860200266 (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:spr:mathme:v:57:y:2003:i:2:p:329-344

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/00186

DOI: 10.1007/s001860200266

Access Statistics for this article

Mathematical Methods of Operations Research is currently edited by Oliver Stein

More articles in Mathematical Methods of Operations Research from Springer, Gesellschaft für Operations Research (GOR), Nederlands Genootschap voor Besliskunde (NGB)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().