Article ID: | iaor1992448 |
Country: | United Kingdom |
Volume: | 42 |
Issue: | 7 |
Start Page Number: | 605 |
End Page Number: | 608 |
Publication Date: | Jul 1991 |
Journal: | Journal of the Operational Research Society |
Authors: | Silver Edward A. |
Keywords: | heuristics |
For low-usage (so-called C) items it makes sense to have rather low control costs, i.e. a simple control procedure. In this paper a very simple graphical implementation aid is developed for selecting either the reorder point in a continuous-review, reorder point, order quantity system or the order-up-to-level in a periodic-review, order-up-to-level system. The development is based upon a Poisson distribution of demand during a lead time (and review interval), which is likely to be appropriate for low-usage items.