Optimum ordering policies for expensive slow moving items

✍ Scribed by S. Kalpakam; K.P. Sapna

• Book ID: 104350057
• Publisher: Elsevier Science
• Year: 1998
• Tongue: English
• Weight: 284 KB
• Volume: 11
• Category: Article
• ISSN: 0893-9659
• DOI: 10.1016/s0893-9659(98)00039-1

✦ Synopsis

This paper deals with the concept of delayed placement of orders for high cost products subject to unit-sized renewal demands. The inventory system considered is one with arbitrary inter-demand distributions, constant leadtimes, and linear carrying costs, where leadtimes are small relative to average time between demands and holding costs are large relative to other inventory costs. Shortages are either met on an emergency basis at a premium cost or lost. Expressions for the optimal delay are given for inter-demand distributions having increasing or decreasing renewal densities.