An (s, q) inventory model with stochastic and interrelated lead times

Ruud Heuts and Jan de Klein

Naval Research Logistics (NRL), 1995, vol. 42, issue 5, 839-859

Abstract: In this article we introduce a lead time mechanism that allows simultaneous order arrivals. This mechanism ensures that orders never cross each other. For the continuous review (s, q) inventory system with constant demand, we show that the allowance of batch arrivals gives rise to a discontinuous cost function. By exploiting the special structure of this cost function, a search algorithm is derived that yields the optimal order strategy in a reasonable amount of time. The search is restricted to integer order strategies only. We also consider an approximate method of solution that is based on a related model with a continuous cost function. The results obtained by this approximation are, in general, very satisfactory. © 1995 John Wiley & Sons, Inc.

Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.1002/1520-6750(199508)42:53.0.CO;2-8

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:wly:navres:v:42:y:1995:i:5:p:839-859

Access Statistics for this article

More articles in Naval Research Logistics (NRL) from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().