(S,S) Inventory Policies for a Wholesale Warehouse Inventory System.

Abstract

Inventory managers often encounter erratic demand histories which are difficult to model. For example, periods of no demand are frequently observed, and when demand is positive, it tends to be quite large. Furthermore, periods of high demand are followed by several periods of low demand. One possible explanation for this sporadic and correlated demand behavior is that demand originates from separate facilities which employ (s,S) replenishment policies. That is, each period's demand is the sum of the replenishment order quantities received from other facilities. In this investigation we consider the management of an inventory system exposed to this type of demand environment. The complex nature of the demand history that arises in such a wholesale warehouse environment makes the computation of optimal replenishment policies prohibitive. We confine our attention, therefore, to stationary policies of the (s,S) form, and estimate the best values of the policy parameters by means of computer simulation.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1979
Accession Number
ADA068770

Entities

People

  • Carl R. Schultz
  • Harvey M. Wagner
  • Richard Ehrhardt

Organizations

  • University of North Carolina at Chapel Hill

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Algorithms
  • Binomials
  • Business Administration
  • Computations
  • Computer Programs
  • Computer Simulations
  • Computers
  • Data Science
  • Department Of Veterans Affairs
  • Experimental Design
  • Inventory Control
  • Operations Research
  • Plastic Explosives
  • Random Variables
  • Replenishment
  • Social Sciences
  • Test And Evaluation

Readers

  • Brain and Cognitive Science; Experimental Psychology; Cognitive Neuroscience
  • Educational Psychology
  • Logistics and Supply Chain Management.