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Developing a closed-form cost expression for an (R,s,nQ) policy where the demand process is compound generalized Erlang

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Listed:
  • Larsen, Christian

    (Department of Management Science and Logistics, Aarhus School of Business)

  • Kiesmüller, Gudrun P.

    (Faculty of Technology Management)

Abstract

We derive a closed-form cost expression for an (R,s,nQ) inventory control policy where all replenishment orders have a constant lead-time, unfilled demand is backlogged and inter-arrival times of order requests are generalized Erlang distributed

Suggested Citation

  • Larsen, Christian & Kiesmüller, Gudrun P., 2006. "Developing a closed-form cost expression for an (R,s,nQ) policy where the demand process is compound generalized Erlang," CORAL Working Papers L-2006-09, University of Aarhus, Aarhus School of Business, Department of Business Studies.
    • Handle: RePEc:hhb:aarbls:2006-009
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    References listed on IDEAS

    as
    1. Martin Beckmann, 1961. "An Inventory Model for Arbitrary Interval and Quantity Distributions of Demand," Management Science, INFORMS, vol. 8(1), pages 35-57, October.
    2. Awi Federgruen & Yu-Sheng Zheng, 1992. "An Efficient Algorithm for Computing an Optimal (r, Q) Policy in Continuous Review Stochastic Inventory Systems," Operations Research, INFORMS, vol. 40(4), pages 808-813, August.
    3. Kaj Rosling, 2002. "Inventory Cost Rate Functions with Nonlinear Shortage Costs," Operations Research, INFORMS, vol. 50(6), pages 1007-1017, December.
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    More about this item

    Keywords

    Inventory control; Compound renewal process; Generalized Erlang distribution;
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