Nervousness in inventory management : comparison of basic control rules

A.G. Kok, de, K. Inderfurth

Research output: Contribution to journalArticleAcademicpeer-review

54 Citations (Scopus)
394 Downloads (Pure)

Abstract

Using a rolling horizon planning framework in inventory control leads to nervousness in the planning system caused by instability of order release decisions in successive planning cycles. For a single-stage inventory system with arbitrary stochastic demand it is shown analytically, how planning stability is affected by policy parameters if (s, nQ), (s, S), and (T, S) control rules are applied. It turns out that the reorder point s does not influence stability whereas the lot size determining parameters Q, S - s, and T can have a considerable impact. However, this influence turns out to be quite different for different measures of stability regarding order setup or order quantity deviations, respectively. Using these planning stability results the priority of the different control rules under the aspect of nervousness is discussed.
Original languageEnglish
Pages (from-to)55-82
Number of pages28
JournalEuropean Journal of Operational Research
Volume103
Issue number1
DOIs
Publication statusPublished - 1997

Fingerprint Dive into the research topics of 'Nervousness in inventory management : comparison of basic control rules'. Together they form a unique fingerprint.

  • Cite this