(s, S) Policies for a Dynamic Inventory Model with Stochastic Lead Times
- UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
- Richard A. Ehrhardt, Professor (Creator)
- Institution
- The University of North Carolina at Greensboro (UNCG )
- Web Site: http://library.uncg.edu/
Abstract: This study analyzes a stochastic lead time inventory model under the assumptions
that (a) replenishment orders do not cross in time and (b) the lead time
distribution for a given order is independent of the number and sizes of
outstanding orders. The study extends the existing literature on the finite horizon
version of the model and yields an intuitively appealing dynamic program
that is nearly identical to one that would apply in a transformed model with all
lead times fixed at zero. Hence, many results that have been derived for fixed
lead time models generalize easily. Conditions for the optimality of myopic base stock
policies, and for the optimality of (s, S) policies are established for both
finite and infinite planning horizons. The infinite-horizon model analysis is extended
by adapting the fixed lead time results for the efficient computation of
optimal and approximately optimal (s, S) policies.
(s, S) Policies for a Dynamic Inventory Model with Stochastic Lead Times
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Additional Information
- Publication
- Operations Research Vol. 32, No. 1, January-February 1984
- Language: English
- Date: 1984
- Keywords
- Inventory management, Stochastic, (s,S)