Accession Number:

ADA094850

Title:

(S,S) Policies for a Dynamic Inventory Model with Stochastic Lead Times.

Descriptive Note:

Technical rept.,

Corporate Author:

NORTH CAROLINA UNIV AT CHAPEL HILL SCHOOL OF BUSINESS ADMINISTRATION

Personal Author(s):

Report Date:

1980-12-01

Pagination or Media Count:

29.0

Abstract:

A stochastic lead time inventory model is analyzed under the assumptions that 1 replenishment orders do not cross in time and 2 the lead time distribution for a given order is independent of the number and sizes of outstanding orders. This study corrects errors in the existing literature on the finite-horizon version of the model and yields an intuitively appealing dynamic program that is nearly identical to one that would apply in a transformed model with all lead times fixed at zero. Hence, many results that have been derived for fixed lead time models generalized easily. Conditions for the optimality of s,S policies are established for both finite and infinite planning horizons. The infinite-horizon model analysis is extended by adapting the fixed lead time results for the efficient computation of optimal and approximately optimal s,S policies. Author

Subject Categories:

  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE