Accession Number:

AD0701003

Title:

THE RELATIONSHIP BETWEEN DECISION VARIABLES AND PENALTY COST PARAMETER IN (Q, R) INVENTORY MODELS.

Descriptive Note:

Technical rept.,

Corporate Author:

ARMY LOGISTICS MANAGEMENT CENTER FORT LEE VA

Personal Author(s):

• Kaplan,Alan J.

Report Date:

1969-11-01

Pagination or Media Count:

16.0

Abstract:

The paper is concerned with the optimum decision variables found using order quantity, reorder point Q,R inventory models. It examines whether the optimum variables Q and R are necessarily monotonic functions of the backorder cost parameter or equivalently of the performance objective. For a general class of models it is proved that R must increase as the performance objective is raised, and an inequality condition is derived which governs how Q will change. Probability distributions of lead time demand are cited or found for which Q increases, Q decreases and Q is independent of increases in performance objectives or backorder cost parameter. Author

Descriptors:

• (*INVENTORY CONTROL
• MATHEMATICAL MODELS)
• STATISTICAL DISTRIBUTIONS
• DECISION THEORY
• THEOREMS

Subject Categories:

• Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE