Closed-form approximations for optimal (r, q) and (S, T) policies in a parallel processing environment

• Main Authors: ANG, Marcus, SIGMAN, Karl, SONG, Jing-Sheng, ZHANG, Hanqin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: inventory system; (r; q) policy; stochastic leadtime; asymptotic analysis; heavy traffic limit.; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5831; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6830/viewcontent/Closed_Form_Approximations_2016_afv.pdf
• Institution: Singapore Management University

We consider a single-item continuous-review (r, q) inventory system with a renewal demand process and independent, identically distributed stochastic lead times. Using a stationary marked-point process technique and a heavy-traffic limit, we prove a previous conjecture that inventory position and in...