Please use this identifier to cite or link to this item:
Title: A comparison of different methods for estimating the average inventory level in a (Q,R) system with backorders
Authors: Lau, AHL
Lau, HS
Keywords: Inventory
(Q,R) models
Issue Date: 2002
Publisher: Elsevier
Source: International journal of production economics, 2002, v. 79, no. 3, p. 303-316 How to cite?
Journal: International journal of production economics 
Abstract: In a continuous-review order-quantity-reorder-point inventory system with backordering, the most common approximation to the average inventory level is Hadley–Whitin's expression (12Q+safety stock), where Q is the order quantity. In the literature it has been indicated that this approximation depends on the assumption of negligible stockout probability; for situations in which this assumption is violated, various alternative approximation expressions have been developed. This study shows that: (i) Hadley–Whitin's expression is more robust than the literature appears to imply; (ii) the currently available alternatives are not sufficiently accurate to take over when the Hadley–Whitin approximation's accuracy begins to deteriorate due to increasing stockout probability. A simpler and more accurate alternative approximate expression is then presented, and its applications are illustrated.
ISSN: 0925-5273
DOI: 10.1016/S0925-5273(02)00257-8
Appears in Collections:Journal/Magazine Article

View full-text via PolyU eLinks SFX Query
Show full item record


Last Week
Last month
Citations as of Aug 16, 2018

Page view(s)

Last Week
Last month
Citations as of Aug 20, 2018

Google ScholarTM



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.