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A Model for Continuous-Review Pull Policies in Serial Inventory Systems

Author

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  • Ralph D. Badinelli

    (Virginia Polytechnic Institute and State University, Blacksburg, Virginia)

Abstract

In this paper, we construct a model of the steady-state values of on-hand inventory and backorders for each facility of a serial inventory system in which each facility follows a ( Q , R ) policy based on installation stock. Such policies are represented by the popular kanban systems as well as more conventional applications of ( Q , R ) policies. The descriptive model presented here is intended for optimizing the parameters of such a policy and for obtaining theoretical results about the behavior of the system. We also illustrate the potential of the model for providing insights into system performance.

Suggested Citation

  • Ralph D. Badinelli, 1992. "A Model for Continuous-Review Pull Policies in Serial Inventory Systems," Operations Research, INFORMS, vol. 40(1), pages 142-156, February.
    • Handle: RePEc:inm:oropre:v:40:y:1992:i:1:p:142-156
    DOI: 10.1287/opre.40.1.142
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    Cited by:

    1. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    2. Kim, Ilhyung & Tang, Christopher S., 1997. "Lead time and response time in a pull production control system," European Journal of Operational Research, Elsevier, vol. 101(3), pages 474-485, September.
    3. Karaman, Abdullah & Altiok, Tayfur, 2009. "Approximate analysis and optimization of batch ordering policies in capacitated supply chains," European Journal of Operational Research, Elsevier, vol. 193(1), pages 222-237, February.
    4. E. P. Chew & L. A. Johnson, 1995. "Service levels in distribution systems with random customer order size," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(1), pages 39-56, February.
    5. Sarker, Bhaba R. & Balan, Chidambaram V., 1999. "Operations planning for a multi-stage kanban system," European Journal of Operational Research, Elsevier, vol. 112(2), pages 284-303, January.
    6. Diks, E. B. & de Kok, A. G. & Lagodimos, A. G., 1996. "Multi-echelon systems: A service measure perspective," European Journal of Operational Research, Elsevier, vol. 95(2), pages 241-263, December.
    7. Badinelli, Ralph D., 1996. "Approximating probability density functions and their convolutions using orthogonal polynomials," European Journal of Operational Research, Elsevier, vol. 95(1), pages 211-230, November.
    8. Ying Zhang & Jayashankar M. Swaminathan, 2020. "Warehouse Location in An Emerging Country: A Win–Win Proposition?," Production and Operations Management, Production and Operations Management Society, vol. 29(6), pages 1487-1505, June.
    9. Fangruo Chen & Yu-Sheng Zheng, 1998. "Near-Optimal Echelon-Stock (R, nQ) Policies in Multistage Serial Systems," Operations Research, INFORMS, vol. 46(4), pages 592-602, August.
    10. Mitra, Subrata & Chatterjee, A. K., 2004. "Echelon stock based continuous review (R,Q) policy for fast moving items," Omega, Elsevier, vol. 32(2), pages 161-166, April.
    11. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.
    12. Li, Xiaoming & Sridharan, V., 2008. "Characterizing order processes of using (R,nQ) inventory policies in supply chains," Omega, Elsevier, vol. 36(6), pages 1096-1104, December.

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