Simple approximations for the reorder point in periodic and continuous review (s, S) inventory systems with service level constraints

1984 ◽  
Vol 17 (2) ◽  
pp. 175-190 ◽  
Author(s):  
H.C. Tijms ◽  
H. Groenevelt
Keyword(s):  
Service Level ◽  
Inventory Systems ◽  
Continuous Review ◽  
Reorder Point

scholarly journals On the shortage control in a continuous review (Q, r) inventory policy using αL service-level

2021 ◽  
Vol 55 (5) ◽  
pp. 2785-2806
Author(s):  
Pablo Escalona ◽  
Diego Araya ◽  
Enrique Simpson ◽  
Mario Ramirez ◽  
Raul Stegmaier
Keyword(s):  
Service Level ◽  
Inventory Systems ◽  
Inventory Policy ◽  
Continuous Review ◽  
Arbitrary Time ◽  
Product Availability ◽  
Random Events ◽  
Replenishment Cycle ◽  
The Cost

Popular measures of product availability in inventory systems seek to control different aspects of stock shortages. However, none of them simultaneously control all aspects of shortages, because stock shortages in inventory systems are complex random events. This paper analyzes the performance of αL service measure, defined as the probability that stockouts do not occur during a replenishment cycle, to cover different aspects of stock shortages when used to design an optimal continuous review (Q, r) policy. We show that explicitly controlling the frequency of replenishment cycle stockouts, using the αL service-level, allows to implicitly control the size of the stockouts at an arbitrary time, the size of accumulated backorders at an arbitrary time, and the duration of the replenishment cycle stockouts. However, the cost of controlling the frequency of replenishment cycle stockouts is greater than the cost of controlling the size of stockouts and the duration of the replenishment cycle stockouts.

Relationships between Service Level Measures for Inventory Systems

1994 ◽  
Vol 45 (7) ◽  
pp. 838
Author(s):  
John E. Boylan ◽  
F. R. Johnston
Keyword(s):  
Service Level ◽  
Inventory Systems

A note on evaluating the risk in continuous review inventory systems

2009 ◽  
Vol 47 (19) ◽  
pp. 5543-5558 ◽  
Author(s):  
Moosa Sharafali ◽  
Mohammed A. Shahul Hameed ◽  
Venkata S.S. Yadavalli
Keyword(s):  
Inventory Systems ◽  
Continuous Review
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