| Article ID: | iaor19992784 |
| Country: | India |
| Volume: | 19 |
| Issue: | 3 |
| Start Page Number: | 417 |
| End Page Number: | 421 |
| Publication Date: | Sep 1998 |
| Journal: | Information & Optimization Sciences |
| Authors: | Alstrom Poul |
| Keywords: | economic order |
In this article, the author examines a reorder point inventory system with constant lead time and stochastic demand. It is assumed that the order quantity, Q, is constant and determined outside the system, e.g. EOQ (economic order quantity), and the stock level is continuously reviewed. The key word is the safety stock, S, and the extra cost of holding it.