Approximation of Higher Echelon Demand Distribution in a Two-Echelon Continuous Review Inventory System with Lost Sale

Publish Year: 1383
نوع سند: مقاله کنفرانسی
زبان: English
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شناسه ملی سند علمی:

IIEC03_024

تاریخ نمایه سازی: 10 مهر 1385

Abstract:

The inventory system under consideration consists of one central warehouse and an arbitrary number of retailers controlled by continuous review inventory policy (R, Q). We assume independent poisson demands with constant lead times (transportation times) for all retailers and a constant lead time for replenishing orders from an external supplier together with "all or nothing" policy for the warehouse. Unsatisfied demands are assumed to be lost in the retailers and orders incurred stock out in the warehouse, are backordered. We approximate demand in the warehouse as poisson together with its mean rate. We then compare the approximation results with simulation for the average waiting time of the orders in the warehouse as the criteria for performance of the approximation. Less error of the mentioned criteria means that our approximation of poisson demand in the warehouse works better.

Authors

Akbari Jokar

Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran

Seifbarghy

Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran

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