Characterizing order processes of continuous review (s,S) and (r,nQ) policies

摘要: Abstract We provide a novel approach to characterize the order process of continuous review ( s , S ) and r nQ inventory policies, study impact batching parameter (the value Q or - on variability in process. First, we distribution time between orders, as well sizes. find that coefficient variation (cv) orders is smaller than cv demands. The size can exhibit either variance amplification dampening, compared demand sizes, depending parameter. This may motivate supplier adjust his imposed fixed cost influence size. Second, look at compound process, defined by number units ordered during an arbitrary interval. always exhibits demand, which increases linearly for large values ; small values, fluctuating. point out interval, ordered/demanded observed, also impacts level amplification, show what extent larger intervals (resulting more aggregation data) lead lower amplification. Both perspectives (looking quantities, observing process) useful information upstream supplier.