On the continuous-review (s, S) inventory model under compound renewal demand and random lead times

Izzet Sahin

doi:10.2307/3213739

Abstract

Binomial moments of the time-dependent and limiting distributions of inventory deficit are derived for a continuous-review (s, S) inventory system under the assumption that interarrival times, demand sizes, and lead times are independent sequences of independent, identically distributed random variables. Explicit expressions for the limiting distribution are also given in some special cases of practical interest. The approach used follows that of Finch [2] who investigated the system under the additional assumption of unit demands.

Footnotes

Research supported by the National Science Foundation under Grant No. ECS-8011916.

References

[1] Coleman, R. (1981) The moments of forward recurrence time. Department of Mathematics, Imperial College.Google Scholar

[2] Finch, P. D. (1961) Some probability theorems in inventory control. Publ. Math. Debrecen. 8, 241–261.CrossRef Google Scholar

[3] Sahin, I. (1979) On the stationary analysis of continuous review (s, S) inventory systems with constant lead times. Operat. Res. 27, 717–729.CrossRef Google Scholar

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On the continuous-review (s, S) inventory model under compound renewal demand and random lead times

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Article contents

On the continuous-review (s, S) inventory model under compound renewal demand and random lead times

Abstract

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