
Accession Number : AD0844040
Title : Optimal Continuous Time (s,S) Policies When Deliveries are Subject to Time Lags.
Corporate Author : ARCON CORP WALTHAM MA
Report Date : 01 NOV 1968
Pagination or Media Count : 59
Abstract : Scarf has studied the stationary operating characteristics of continuous time (s,S) procedures, which order Ss units whenever the number of items in stock plus the number of items on back order is less than or equal to s. In the present work, a similar model is considered with one important change in the ground rules: Once an order is placed to replenish the inventory, no subsequent orders can be placed until the order is delivered. The average cost per unit time, associated with the class of policies which places orders of size Ss, whenever the stock on hand falls below s is examined. Once having derived an analytic expression for the average cost per unit time, it is a relatively straightforward computational task to produce the values of (s, S) which minimize this cost. Several numerical case studies are made which exhibit the sensitivity of the optimal policy to the cost parameters of the model. (Author)
Descriptors : *INVENTORY CONTROL, MATHEMATICAL MODELS, OPTIMIZATION, SENSITIVITY, STATISTICAL PROCESSES, DISTRIBUTION THEORY, COSTS.
Subject Categories : Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE