TY - JOUR
T1 - Two replenishment strategies for the lost sales inventory model: a comparison
AU - Donselaar, van, K.H.
AU - Kok, de, A.G.
AU - Rutten, W.G.M.M.
PY - 1996
Y1 - 1996
N2 - For the lost sales inventory system we distinguish two different replenishment strategies. The simplest strategy is the classical ‘fixed reorder level’ replenishment rule: every period the inventory position in the system is raised up to a fixed quantity S. For this simple strategy we derive and test heuristics for the determination of the reorder level, given a target service level.
Next we demonstrate that it may be more efficient in a lost sales system to use a different replenishment strategy. This alternative replenishment strategy however is more complex. Therefore a comparison is made between the two replenishment strategies in a lost sales environment, to get an indication of the price which has to be paid here for simplicity.
AB - For the lost sales inventory system we distinguish two different replenishment strategies. The simplest strategy is the classical ‘fixed reorder level’ replenishment rule: every period the inventory position in the system is raised up to a fixed quantity S. For this simple strategy we derive and test heuristics for the determination of the reorder level, given a target service level.
Next we demonstrate that it may be more efficient in a lost sales system to use a different replenishment strategy. This alternative replenishment strategy however is more complex. Therefore a comparison is made between the two replenishment strategies in a lost sales environment, to get an indication of the price which has to be paid here for simplicity.
U2 - 10.1016/0925-5273(95)00066-6
DO - 10.1016/0925-5273(95)00066-6
M3 - Article
VL - 46
SP - 285
EP - 295
JO - International Journal of Production Economics
JF - International Journal of Production Economics
SN - 0925-5273
IS - 47
ER -