Back-order lead time behaviour in (s,Q)-inventory models with compound renewal demand

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Abstract

In the practice of inventory management customer-oriented performance characteristics as opposed to availability-oriented performance characteristics have received more and more attention. Instead of measuring the probability of a stockout one measures the probability that a customer's demand is satisfied within one week. In this paper we derive approximate expressions for the customer waiting time distribution in case a single stockpoint is replenished according to an (s,Q)-policies. The demand process is compound renewal, i.e. customer has a demand distributed according to some arbitrary distribution funtion. Extensive simulations show that the approximations yield excellent results. The results can be applied to analyze distribution networks where each stockpoint is controlled according to an (s,Q)-model.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages28
Publication statusPublished - 1993

Publication series

NameMemorandum COSOR
Volume9333
ISSN (Print)0926-4493

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