Impact of Using Non-Optimal Reorder Points.

Abstract

A steady state inventory system with an (R,Q) type ordering policy, Poisson demand, and fixed lead times is considered. It is formally shown that the cost of ordering one time at asset level R1 rather than asset level R2 is equal to the difference in average cost per cycle of always ordering at R1 versus always ordering at R2. This is true regardless of when future orders are placed. Areas to which this result has practical application are identified. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1973
Accession Number
AD0755863

Entities

People

  • Alan J. Kaplan

Tags

DTIC Thesaurus Topics

  • Engineering
  • Inventory
  • Lead Time
  • Scheduling (Production)
  • Steady State
  • Time

Readers

  • Logistics and Supply Chain Management.
  • Operations Research
  • Regression Analysis.