Managing periodic review inventory systems with capacitated replenishments

B. Raa (), T. Dubois () and W. Dullaert
Additional contact information
W. Dullaert: -

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: This paper studies periodic review inventory systems in which replenishments are capacitated. This capacity restriction implies that the order-up-to level may not always be reached at each replenishment, such that additional safety stock is needed to achieve the same service level as in the uncapacitated case usually assumed in the existing literature. To determine the required level of safety stock, and hence the order-up-to level, an iterative procedure is proposed which can be adjusted to either find an approximate solution quickly, or a more accurate solution when larger computation times are allowed. Computational experiments illustrate the impact of a restricted replenishment capacity on the required safety stock level, and the effectiveness of the proposed iterative method in calculating the required order-up-to levels.

Keywords: Periodic review; Order-up-to; Base-stock; Safety stock; Fill rate. (search for similar items in EconPapers)
Pages: 2 pages
Date: 2011-09
New Economics Papers: this item is included in nep-cmp
References: Add references at CitEc
Citations:

Downloads: (external link)
http://wps-feb.ugent.be/Papers/wp_11_736.pdf (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:rug:rugwps:11/736

Access Statistics for this paper

More papers in Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Nathalie Verhaeghe ().