Accession Number : AD0696161

Title :   ON CONTINUOUS-REVIEW (S-1,S) INVENTORY POLICIES WITH STATE-DEPENDENT LEADTIMES,

Corporate Author : RESEARCH ANALYSIS CORP MCLEAN VA

Personal Author(s) : Gross,Donald ; Harris,Carl M. ; Robers,Philip D.

Report Date : OCT 1969

Pagination or Media Count : 54

Abstract : The paper describes several one-for-one ordering (S-1,S) inventory models in which the time required for order replenishment, or leadtime, depends on the number of orders outstanding. Demand is assumed to be a Poisson random variable with a constant mean lambda, and leadtime is assumed to be state dependent in either one of two ways: (1) that portion of the leadtime which corresponds to the actual filling of orders is an exponentially-distributed random variable with a distribution function and (2) the instantaneous probability at an arbitrary point in time of an order being filled in an infinitesimal interval of time. Several models are investigated for each type. The orders placed are assumed to go into a single-server queue, and queuing theory results are used to obtain the expected inventory costs as a function of S in order to obtain an optimal value of S. Some of the models are expanded to include costs dependent on a service-rate parameter and are then optimized with respect to both S and the service-rate parameter. (Author)

Descriptors :   (*INVENTORY CONTROL, *REPLACEMENT THEORY), MATHEMATICAL MODELS, LEAD TIME, MANAGEMENT ENGINEERING, DISTRIBUTION FUNCTIONS, PROBABILITY, QUEUEING THEORY, COSTS, OPTIMIZATION, STATISTICAL PROCESSES, DIFFERENCE EQUATIONS

Subject Categories : Administration and Management

Distribution Statement : APPROVED FOR PUBLIC RELEASE