Article ID: | iaor20032655 |
Country: | United States |
Volume: | 5 |
Issue: | 1 |
Start Page Number: | 37 |
End Page Number: | 53 |
Publication Date: | Dec 2003 |
Journal: | Manufacturing & Service Operations Management |
Authors: | Rao Uday S. |
This paper studies the single-item, periodic review, order-up-to policy in which both the review period and the order-up-to level are decision variables. The paper provides results similar to those of Roundy and Zhang for the periodic review inventory control policy. The cost function for the period review policy is shown to be jointly convex in its decision parameters for both the compound Poisson demand model and the Brownian motion demand process. Sensitivity analysis shows that the cost is insensitive to the review period