Accession Number : AD0710995

Title :   ON AN ANALYTIC THEORY FOR A DIMENSIONAL AND COMPUTATIONAL STUDY IN AN (s,S) INVENTORY PROBLEM.

Descriptive Note : Technical rept.,

Corporate Author : FLORIDA UNIV GAINESVILLE DEPT OF INDUSTRIAL AND SYSTEMS ENGINEERING

Personal Author(s) : Sivazlian,B. D.

Report Date : JUN 1970

Pagination or Media Count : 22

Abstract : In the stationary periodic review (s,S) inventory system with stationary demand and immediate delivery of orders, the optimal values of s and S, say s* and S*, will be a function of the input parameters defining the cost structure and the demand distribution. Assume backlog is allowed and let the fixed order cost be K, the unit holding cost be h and the unit penalty cost be p. Further, assume the demand per period to have a gamma distribution of order r and with parameter mu. A dimensional analysis of the basic equations dictating the optimal values s* and Q* = S* - s* shows that it is possible to express the quantities mus* and muQ* as a function of the three factors p/h, 2Kmu/h and r. This reduces the number of input paremeters from five to three and enables one to compute values of mus* and muQ* for a range of values of the three input factors. A selected set of graphs is presented allowing one to read the optimal values for given input parameters. (Author)

Descriptors :   (*INVENTORY CONTROL, OPTIMIZATION), COSTS, PROBABILITY DENSITY FUNCTIONS, MATRICES(MATHEMATICS), NUMERICAL ANALYSIS

Subject Categories : Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE