Further improvements on base-stock approximations for independent stochastic lead times with order crossover

• 成果类型: Article
• 署名作者: Robinson, Lawrence W.; Bradley, James R.
• 署名单位: Cornell University; William & Mary
• 刊物名称: M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1523-4614
• DOI: 10.1287/msom.1070.0160
• 发表日期: 2008
• 页码: 325-327
• 关键词: inventory policies/management; base-stock policies; stochastic lead time; order crossover

摘要

When inventory replenishments can arrive in a different sequence than the one in which they were placed, it is important to use the shortfall distribution to set the base-stock level. Because the exact shortfall distribution is quite difficult to compute, heuristics are commonly used in its stead. Bradley and Robinson [Bradley, J. R., L. W. Robinson. 2005. Improved base-stock approximations for independent stochastic lead times with order crossover. Manufacturing Service Oper. Management 7 319-329.] developed an upper bound on the variance of the number of outstanding orders that they used within a normal approximation of the shortfall distribution. In this short note, we tighten their upper bound and use it within a beta approximation of the shortfall distribution to derive a policy whose costs average only 0.05% above that of the optimal.