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An application of the system-point method to inventory models under continuous review

Published online by Cambridge University Press:  14 July 2016

K. Azoury  and
P. H. Brill
K. Azoury*
Affiliation:
California State University, Northridge
P. H. Brill*
Affiliation:
University of Windsor
*
∗ Postal address: Department of Management Science, California State University, Northridge, CA 91330, USA.
∗∗ Postal address: Department of Industrial Engineering, University of Windsor, Windsor, Ontario, Canada N9B 3P4.
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Abstract

This paper derives the stationary probability distribution of inventory level for continuous-review models, by means of the system-point method of level-crossing analysis. We analyze inventory problems with decaying products under (nQ, r) and (s, S) ordering policies and zero lead-time, and derive the relevant cost functions. Our results have implications for the case of positive lead-time and to a non-decaying inventory problem with two types of demand processes.

Keywords

STATIONARY DISTRIBUTIONSLEVEL CROSSINGS

Information

Type
Research Paper
Information
Journal of Applied Probability , Volume 23 , Issue 3 , September 1986 , pp. 778 - 789
Copyright
Copyright © Applied Probability Trust 1986 

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