A Revision of the Power Approximation for Computing (s,S) Policies
- 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: A revision of the Power Approximation for computing (s, S) inventory policies is presented.
The revision incorporates modifications which (1) ensure homgeneity in the units chosen to
measure demand and (2) ensure the proper limiting behavior of S - s when the variance of
demand is extremely small. Computational experience shows that the revision has operating
characteristics that are typically within a few percent of optimal, which is nearly as accurate as
the original Power Approximation.
A Revision of the Power Approximation for Computing (s,S) Policies
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Created on 9/10/2010
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Additional Information
- Publication
- MANAGEMENT SCIENCE Vol. 30, No. 5, May 1984
- Language: English
- Date: 2010
- Keywords
- Inventory/Production-Approximations, Inventory/Production-Periodic Review Models