| Article ID: | iaor199962 |
| Country: | United States |
| Volume: | 45 |
| Issue: | 3 |
| Start Page Number: | 259 |
| End Page Number: | 278 |
| Publication Date: | Apr 1998 |
| Journal: | Naval Research Logistics |
| Authors: | Mohebbi Esmail, Posner Morton J.M. |
Using a system-point method of level crossings, we derive the stationary distribution of the inventory level (stock on hand) in a continuous-review inventory system with compound Poisson demand, Erlang as well as hyperexponentially distributed lead times, and lost sales. This distribution is then used to formulate long-run average cost functions with/without a service level constraint. Some numerical results are also presented, and compared with the Hadley and Whitin heuristic.