An optimal replenishment policy for a single item stochastic inventory with fluidity in the demand process

This paper describes the optimal policy corresponding to a continuous review stochastic inventory system in which units are withdrawn one at a time. Poisson demand and zero lead time are considered. The accumulation of items in stock affects the fluidity in the delivery service, in such way that a customer queue is formed. As a result of it a demand waiting cost component is added to the objective function.