A Note on Evaluating the Risk in Continuous Review Inventory Systems

• Main Authors: MOOSA, Sharafali, HAMEED, Shahul Mohammed A., YADAVALLI, Venkata S. S.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Finance; Risk management; Conditional distribution; Distribution tail; Rational function; Laplace transformation; Stationary condition; Service quality; Obsolescence; Long term; Inventory control; Continuous inventory; Operations and Supply Chain Management; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1109
• Institution: Singapore Management University

This paper is an attempt to evaluate the long term risk of stock-out and obsolescence in continuous review inventory systems, typically of slow-moving but very critical items. Inventory decisions depend very much on the goodness of the estimates of the input parameters like the holding, ordering and...