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The Markov model for base-stock control of an inventory system with Poisson demand, non-crossing lead times and lost sales

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  • Johansen, Søren Glud

Abstract

We study base-stock control of a continuous review single-item inventory system with Poisson demand and lost sales. The item is supplied by an exogenous and sequential system with stochastic lead times (LTs) specified by their mean and standard deviation (SD). Define R as the square of mean/SD and define r as the smallest integer which is at least R. When R

Suggested Citation

  • Johansen, Søren Glud, 2021. "The Markov model for base-stock control of an inventory system with Poisson demand, non-crossing lead times and lost sales," International Journal of Production Economics, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:proeco:v:231:y:2021:i:c:s0925527320302723
    DOI: 10.1016/j.ijpe.2020.107913
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    References listed on IDEAS

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    1. Kouki, Chaaben & Babai, M. Zied & Jemai, Zied & Minner, Stefan, 2019. "Solution procedures for lost sales base-stock inventory systems with compound Poisson demand," International Journal of Production Economics, Elsevier, vol. 209(C), pages 172-182.
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    4. Johansen, Soren Glud, 2005. "Base-stock policies for the lost sales inventory system with Poisson demand and Erlangian lead times," International Journal of Production Economics, Elsevier, vol. 93(1), pages 429-437, January.
    5. Riezebos, Jan, 2006. "Inventory order crossovers," International Journal of Production Economics, Elsevier, vol. 104(2), pages 666-675, December.
    6. Ronald W. Wolff, 1982. "Poisson Arrivals See Time Averages," Operations Research, INFORMS, vol. 30(2), pages 223-231, April.
    7. Johansen, Soren Glud, 2001. "Pure and modified base-stock policies for the lost sales inventory system with negligible set-up costs and constant lead times," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 391-399, May.
    8. William Karush, 1957. "A Queuing Model for an Inventory Problem," Operations Research, INFORMS, vol. 5(5), pages 693-703, October.
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