IDEAS home Printed from https://ideas.repec.org/a/wly/navlog/v28y1981i1p169-180.html
   My bibliography  Save this article

An empirical evaluation of further approximations to an approximate continuous review inventory model

Author

Listed:
  • Donald L. Byrkett

Abstract

This paper describes an empirical evaluation of several approximations to Hadley and Whitin's approximate continuous review inventory model with backorders. It is assumed that lead time demand is normally distributed and various exponential functions are used to approximate the upper tail of this distribution. These approximations offer two important advantages in computing reorder points and reorder quantities. One advantage is that normal tables are no longer required to obtain solutions, and a second advantage is that solutions may be obtained directly rather than iteratively. These approximations are evaluated on two distinct inventory systems. It is shown that an increase in average annual cost of less that 1% is expected as a result of using these approximations. The only exception to this statement is with inventory systems in which a high shortage cost is specified and ordering costs are unusually low.

Suggested Citation

  • Donald L. Byrkett, 1981. "An empirical evaluation of further approximations to an approximate continuous review inventory model," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 28(1), pages 169-180, March.
    • Handle: RePEc:wly:navlog:v:28:y:1981:i:1:p:169-180
    DOI: 10.1002/nav.3800280114
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/nav.3800280114
    Download Restriction: no
    File URL: https://libkey.io/10.1002/nav.3800280114?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:navlog:v:28:y:1981:i:1:p:169-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1931-9193 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.