IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v7y1961i4p351-371.html
   My bibliography  Save this article

A Family of Inventory Models

Author

Listed:
  • G. Hadley

    (University of Chicago)

  • T. M. Whitin

    (University of California, Berkeley)

Abstract

An inventory control model in which the state of the system is reviewed only at discrete, equally spaced time intervals is studied. A procurement is made if at the review period the inventory position of the system is less than or equal to a number k. The quantity procured is an integral multiple of a number Q. The total expected cost of review, procurement, holding inventory, and stockouts is determined under the assumption that all demands are ultimately met. The cost of a stockout is taken to consist of a fixed cost per unit out of stock plus a variable cost which is proportional to the time out of stock. Specific expressions for all the cost expressions are found for the case of (1) Poisson demands and fixed lead times, and (2) Poisson demands and gamma lead times. It is shown that many of the inventory models discussed in the literature are special cases of the model here described.

Suggested Citation

  • G. Hadley & T. M. Whitin, 1961. "A Family of Inventory Models," Management Science, INFORMS, vol. 7(4), pages 351-371, July.
    • Handle: RePEc:inm:ormnsc:v:7:y:1961:i:4:p:351-371
    DOI: 10.1287/mnsc.7.4.351
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.7.4.351
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.7.4.351?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
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jing-Sheng Song, 2000. "A Note on Assemble-to-Order Systems with Batch Ordering," Management Science, INFORMS, vol. 46(5), pages 739-743, May.
    2. Wanke, Peter F., 2008. "The uniform distribution as a first practical approach to new product inventory management," International Journal of Production Economics, Elsevier, vol. 114(2), pages 811-819, August.
    3. Li, Xiaoming, 2008. "Demand evolution in stochastic inventory systems: Riskiness increase," International Journal of Production Economics, Elsevier, vol. 116(2), pages 182-189, December.
    4. Kochel, P., 2007. "Order optimisation in multi-location models with hub-and-spoke structure," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 368-387, July.
    5. Ying Wei, 2020. "Optimizing constant pricing and inventory decisions for a periodic review system with batch ordering," Annals of Operations Research, Springer, vol. 291(1), pages 939-957, August.
    6. Fangruo Chen, 1998. "Echelon Reorder Points, Installation Reorder Points, and the Value of Centralized Demand Information," Management Science, INFORMS, vol. 44(12-Part-2), pages 221-234, December.
    7. Aswin Dhamodharan & Ruben Proano, 2012. "Determining the optimal vaccine vial size in developing countries: a Monte Carlo simulation approach," Health Care Management Science, Springer, vol. 15(3), pages 188-196, September.
    8. Li, Xiaoming & Sridharan, V., 2008. "Characterizing order processes of using (R,nQ) inventory policies in supply chains," Omega, Elsevier, vol. 36(6), pages 1096-1104, December.
    9. Fangruo Chen, 2000. "Optimal Policies for Multi-Echelon Inventory Problems with Batch Ordering," Operations Research, INFORMS, vol. 48(3), pages 376-389, June.

    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:inm:ormnsc:v:7:y:1961:i:4:p:351-371. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.