Developing a closed-form cost expression for an (R, s, nQ) policy where the demand process is compound generalized Erlang

Christian Larsen; G. P. Kiesmüller

doi:10.1016/j.orl.2006.11.002

Developing a closed-form cost expression for an (R, s, nQ) policy where the demand process is compound generalized Erlang

Christian Larsen
, G. P. Kiesmüller

Aarhus School of Business
Eindhoven University of Technology

Research output: Contribution to journal › Article › peer-review

11 Scopus citations

Abstract

We derive a closed-form cost expression for an (R, s, nQ) inventory control policy where all replenishment orders have a constant lead-time, unfilled demand is back-logged and inter-arrival times of order requests are generalized Erlang distributed. For given values of Q and R we show how to compute the optimal reorder level s.

Original language	English
Pages (from-to)	567-572
Number of pages	6
Journal	Operations Research Letters
Volume	35
Issue number	5
DOIs	https://doi.org/10.1016/j.orl.2006.11.002
State	Published - Sep 2007
Externally published	Yes

Keywords

Compound renewal process
Generalized Erlang distribution
Inventory control

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10.1016/j.orl.2006.11.002

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title = "Developing a closed-form cost expression for an (R, s, nQ) policy where the demand process is compound generalized Erlang",

abstract = "We derive a closed-form cost expression for an (R, s, nQ) inventory control policy where all replenishment orders have a constant lead-time, unfilled demand is back-logged and inter-arrival times of order requests are generalized Erlang distributed. For given values of Q and R we show how to compute the optimal reorder level s.",

keywords = "Compound renewal process, Generalized Erlang distribution, Inventory control",

author = "Christian Larsen and Kiesm{\"u}ller, \{G. P.\}",

note = "Funding Information: This research was made while the first author spent his sabbatical leave at Technical University Eindhoven, The Netherlands, partly supported by a grant from Otto M{\o}nsteds Fond.",

year = "2007",

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doi = "10.1016/j.orl.2006.11.002",

language = "English",

volume = "35",

pages = "567--572",

journal = "Operations Research Letters",

issn = "0167-6377",

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T1 - Developing a closed-form cost expression for an (R, s, nQ) policy where the demand process is compound generalized Erlang

AU - Larsen, Christian

AU - Kiesmüller, G. P.

N1 - Funding Information: This research was made while the first author spent his sabbatical leave at Technical University Eindhoven, The Netherlands, partly supported by a grant from Otto Mønsteds Fond.

PY - 2007/9

Y1 - 2007/9

N2 - We derive a closed-form cost expression for an (R, s, nQ) inventory control policy where all replenishment orders have a constant lead-time, unfilled demand is back-logged and inter-arrival times of order requests are generalized Erlang distributed. For given values of Q and R we show how to compute the optimal reorder level s.

AB - We derive a closed-form cost expression for an (R, s, nQ) inventory control policy where all replenishment orders have a constant lead-time, unfilled demand is back-logged and inter-arrival times of order requests are generalized Erlang distributed. For given values of Q and R we show how to compute the optimal reorder level s.

KW - Compound renewal process

KW - Generalized Erlang distribution

KW - Inventory control

UR - https://www.scopus.com/pages/publications/34547609573

U2 - 10.1016/j.orl.2006.11.002

DO - 10.1016/j.orl.2006.11.002

M3 - Article

AN - SCOPUS:34547609573

SN - 0167-6377

VL - 35

SP - 567

EP - 572

JO - Operations Research Letters

JF - Operations Research Letters

IS - 5

ER -

Developing a closed-form cost expression for an (R, s, nQ) policy where the demand process is compound generalized Erlang

Abstract

Keywords

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