IDEAS home Printed from https://ideas.repec.org/a/spr/mathme/v53y2001i1p147-165.html
   My bibliography  Save this article

A multi-item continuous review inventory system with compound Poisson demands

Author

Listed:
  • K. Ohno
  • T. Ishigaki

Abstract

In this paper, we consider a multi-item continuous review inventory system with compound Poisson demands under a general cost structure. Excess demand is backlogged and a fixed delivery lag is assumed. A new algorithm for computing an exact optimal policy is derived based upon the policy iteration method (PIM) using properties of the optimal policy. This algorithm reduces substantially computation times in both the policy evaluation and the policy improvement routines of the PIM. In fact, numerical examples show that the computation times of the new algorithm are less than three percent of those of the PIM. Moreover, three joint ordering policies – the (s, c, S), the (R, T) and the (Q, S) policies – are compared with the optimal ordering policy computed by the new algorithm. It is shown that the (Q, S) policy is almost best among the three joint ordering policy and gives more than ten percent higher expected cost rate than the optimal ordering policy. Copyright Springer-Verlag Berlin Heidelberg 2001

Suggested Citation

  • K. Ohno & T. Ishigaki, 2001. "A multi-item continuous review inventory system with compound Poisson demands," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 53(1), pages 147-165, April.
    • Handle: RePEc:spr:mathme:v:53:y:2001:i:1:p:147-165
    DOI: 10.1007/s001860000101
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s001860000101
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s001860000101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. S G Johansen & P Melchiors, 2003. "Can-order policy for the periodic-review joint replenishment problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(3), pages 283-290, March.
    2. Chenglin Hu & Junsong Bian & Daozhi Zhao & Longfei He & Fangqi Dong, 2024. "Optimal Dynamic Production Planning for Supply Network with Random External and Internal Demands," Mathematics, MDPI, vol. 12(17), pages 1-33, August.
    3. Larsen, Christian, 2009. "The Q(s,S) control policy for the joint replenishment problem extended to the case of correlation among item-demands," International Journal of Production Economics, Elsevier, vol. 118(1), pages 292-297, March.
    4. Young Hyeon Yang & Jong Soo Kim, 2020. "An adaptive joint replenishment policy for items with non-stationary demands," Operational Research, Springer, vol. 20(3), pages 1665-1684, September.
    5. Minner, Stefan & Silver, Edward A., 2007. "Replenishment policies for multiple products with compound-Poisson demand that share a common warehouse," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 388-398, July.
    6. Larsen, Christian, 2007. "The Q(s,S) control policy for the joint replenishment problem extended to the case of correlation among item-demands," CORAL Working Papers L-2007-01, University of Aarhus, Aarhus School of Business, Department of Business Studies.
    7. Sivakumar, B., 2008. "Two-commodity inventory system with retrial demand," European Journal of Operational Research, Elsevier, vol. 187(1), pages 70-83, May.
    8. Sandun C. Perera & Suresh P. Sethi, 2023. "A survey of stochastic inventory models with fixed costs: Optimality of (s, S) and (s, S)‐type policies—Continuous‐time case," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 154-169, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:mathme:v:53:y:2001:i:1:p:147-165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.