Simple approximations for the reorder point in periodic and continuous review (s, S) inventory systems with service level constraints

摘要: Abstract In this paper we consider a general class of (s, S) inventory systems including periodic review and continuous systems. We allow for stochastic lead times replenishment orders provided that the probability crossing in time is negligible relevant control rules. accordance with common practice emphasize on service level constraints rather than assuming given stockout costs. particular measure requiring specified fraction demand met directly from stock hand. The purpose to present practically useful approximations recorder point s such required achieved. By simple direct approach, unifying treatment considered given. obtain first tractable system undershoots reorder point. Also, discuss 2-moments obtained by fitting normal respectively gamma distributions empirical distributions. Extensive numerical experience reported, results about sensitivity higher moments