Reorder quantities for (Q,R) inventory models

• Type: Article in International Scientific Journal
• Date: 2000

Authors

Bernanrdo C. Vasconcelos (Author) FEUP; Manuel P. Marques (Author) FEUP

Journal

Title: Journal of the Operational Research Society

Vol. 51 No. 5

Pages: 635-638

ISSN: 0160-5682

Publisher: Taylor & Francis

Other information

DOI: 10.1057/palgrave.jors.2600933

Abstract (EN): The reorder level R and the reorder quantity Q are the parameters to be decided in a continuous review inventory policy. Their optimal values can be approached through iterative methods, but these are tedious and inconvenient for control routines. A frequent practice is to set Q as the economic reorder quantity and compute R accordingly. Yet this practice may introduce a substantial cost penalty. The paper re-arranges conventional theoretical expressions in order to facilitate the use of numerical approximations to help find a quasi-optimal solution. This approach is then applied to Gamma distributed demands showing that computations are straightforward. © 2000 Operational Research Society Ltd. All rights reserved.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 4