Revised (s,S) Power Approximation.

Abstract

This investigation reformulates an approximately optimal algorithm for computing (s, S) inventory policies. The approximation is for a single-item periodic review model with set-up cost, linear holding and shortage cost, fixed replenishment lead time, and backlogging of unfilled demand. The analysis repeats the numerical analysis process performed to derive the Power Approximation - an approximately optimal (s,S) policy rule. The research reported here is a modification of the previous derivation to correct for both the non-homogeneity of the Power Approximation and the limiting behavior of the approximation for S-s. The operating characteristics of the modification are nearly as close to optimal as those of the original Power Approximation. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1981
Accession Number
ADA096692

Entities

People

  • Charles Mosier
  • Harvey M. Wagner
  • Richard Ehrhardt

Organizations

  • University of North Carolina at Chapel Hill

Tags

Communities of Interest

  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Algorithms
  • Binomials
  • Business Administration
  • Commerce
  • Computations
  • Computer Programs
  • Curriculum
  • Extrapolation
  • Information Science
  • Inventory
  • Inventory Control
  • Lead Time
  • North Carolina
  • Numerical Analysis
  • Operations Research
  • Regression Analysis
  • Systems Analysis

Readers

  • Approximation Theory.
  • Logistics and Supply Chain Management.
  • Mathematical Modeling and Probability Theory.