A good approximation of the inventory level in a (Q, r) perishable inventory system

Chiu, Huan Neng. "A good approximation of the inventory level in a (Q, r) perishable inventory system ." RAIRO - Operations Research 33.1 (2010): 29-45. <http://eudml.org/doc/197793>.

@article{Chiu2010,
abstract = { This paper derives a good approach to approximating the expected inventory level per unit time for the continuous review (Q, r) perishable inventory system. Three existing approximation approaches are examined and compared with the proposed approach. Three stockout cases, including the full backorder, the partial backorder, and the full lost sales cases, which customers or material users generally use to respond to a stockout condition are considered. This study reveals the fact that the proposed approximation is simple yet good and suitable for incorporation into the (Q, r) perishable inventory model to determine the best ordering policy. The results from numerical examples and a sensitivity analysis indicate that severe underestimation or overestimation of the expected inventory level per unit time due to the use of an inappropriate approximation approach would result in great distortion in the determination of the best ordering policy. },
author = {Chiu, Huan Neng},
journal = {RAIRO - Operations Research},
keywords = {Perishable inventory; approximation; backorder; lost sales; sensitivity analysis. ; perishable inventory; sensitivity analysis},
language = {eng},
month = {3},
number = {1},
pages = {29-45},
publisher = {EDP Sciences},
title = {A good approximation of the inventory level in a (Q, r) perishable inventory system },
url = {http://eudml.org/doc/197793},
volume = {33},
year = {2010},
}

TY - JOUR
AU - Chiu, Huan Neng
TI - A good approximation of the inventory level in a (Q, r) perishable inventory system
JO - RAIRO - Operations Research
DA - 2010/3//
PB - EDP Sciences
VL - 33
IS - 1
SP - 29
EP - 45
AB - This paper derives a good approach to approximating the expected inventory level per unit time for the continuous review (Q, r) perishable inventory system. Three existing approximation approaches are examined and compared with the proposed approach. Three stockout cases, including the full backorder, the partial backorder, and the full lost sales cases, which customers or material users generally use to respond to a stockout condition are considered. This study reveals the fact that the proposed approximation is simple yet good and suitable for incorporation into the (Q, r) perishable inventory model to determine the best ordering policy. The results from numerical examples and a sensitivity analysis indicate that severe underestimation or overestimation of the expected inventory level per unit time due to the use of an inappropriate approximation approach would result in great distortion in the determination of the best ordering policy.
LA - eng
KW - Perishable inventory; approximation; backorder; lost sales; sensitivity analysis. ; perishable inventory; sensitivity analysis
UR - http://eudml.org/doc/197793
ER -