Article ID: | iaor2001624 |
Volume: | 22 |
Issue: | 4/5 |
Start Page Number: | 179 |
End Page Number: | 182 |
Publication Date: | May 1998 |
Journal: | Operations Research Letters |
Authors: | Heijden M.C. van der, Kok T. de |
Keywords: | measurement |
Calculating the mean physical stock in a simple periodic review inventory system seems to be straightforward. However, the standard approximate expressions appear to yield inaccurate results, especially for low service levels. Low service levels are frequently encountered at intermediate nodes in cost‐optimal solutions for multi‐echelon systems. In this note, we present an improved approximate method that is both simple and accurate.