Managing waiting times of backordered demands in single-stage (Q, r) inventory systems

Managing waiting times of backordered demands in single-stage (Q, r) inventory systems

0.00 Avg rating0 Votes
Article ID: iaor200465
Country: United States
Volume: 49
Issue: 6
Start Page Number: 557
End Page Number: 573
Publication Date: Sep 2002
Journal: Naval Research Logistics
Authors: ,
Abstract:

We present a service constrained (Q, r) model that minimized expected holding and ordering costs subject to an upper bound on the expected waiting time of demands that are actually backordered. We show that, after optimizing over r, the average cost is quasiconvex in Q for logconcave continuous lead time demand distributions. For logconcave discrete lead time demand distributions we find a single-pass efficient algorithm based on a novel search stopping criterion. The algorithm also allows for bounds on the variability of the service measure. A brief numerical study indicates how the bounds on service impact the optimal average cost and the optimal (Q, r) choice. The discrete case algorithm can be readily adapted to provide a single pass algorithm for the traditional model that bounds the expected waiting time of all demands (backorderd or not).

Reviews

Required fields are marked *. Your email address will not be published.