ON AN ANALYTIC THEORY FOR A DIMENSIONAL AND COMPUTATIONAL STUDY IN AN (s,S) INVENTORY PROBLEM.
Abstract
In the stationary periodic review (s,S) inventory system with stationary demand and immediate delivery of orders, the optimal values of s and S, say s* and S*, will be a function of the input parameters defining the cost structure and the demand distribution. Assume backlog is allowed and let the fixed order cost be K, the unit holding cost be h and the unit penalty cost be p. Further, assume the demand per period to have a gamma distribution of order r and with parameter mu. A dimensional analysis of the basic equations dictating the optimal values s* and Q* = S* - s* shows that it is possible to express the quantities mus* and muQ* as a function of the three factors p/h, 2Kmu/h and r. This reduces the number of input paremeters from five to three and enables one to compute values of mus* and muQ* for a range of values of the three input factors. A selected set of graphs is presented allowing one to read the optimal values for given input parameters. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1970
- Accession Number
- AD0710995
Entities
People
- B. D. Sivazlian
Organizations
- University of Florida