The S-1, S Inventory Policy Under Compound Poisson Demand

摘要: This paper derives the simple analytic solution to special but important inventory problem in which optimal policy is reorder whenever units are demanded. The demand distribution can be any compound Poisson; resupply arbitrary. Both backorder case and lost sales solved by generalizing a queueing theorem due Palm. The steady state probabilities for number of or repair completely describe item's long term behavior, simply normalized values Poisson based on mean not itself. Knowledge these enables us compute several measures item supply performance as function spare stock, s. Traditional analysis then applied minimize total cost estimates holding cost. The appendices contain description algorithm computer program calculating stuttering effectiveness case. Numerical illustrations also provided.