Inventory Control Under Stochastic Lead Time and Stochastic Demand
Inventory Control Under Stochastic Lead Time and Stochastic Demand

Author: Kenneth R Rand (Jr)

Publisher:

Published: 1965

Total Pages: 109

ISBN-13:

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An attempt is made to investigate the behavior of an inventory system in which lead time, the size of the demand order, and the time between successive demand orders are all random variables with known probability distributions. Since adequate analytical mathematical models are not existant, a computer-based simulation model is used to study the inventory system. An introduction to the inventory problem and a description of inventory systems currently in use are provided. The formulation of the model is described. Results are presented as graphs of stockout time as a function of reorder point.

A Dynamic Inventory System
A Dynamic Inventory System

Author: William G. Howe

Publisher:

Published: 1964

Total Pages: 40

ISBN-13:

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A truly dynamic system is one which will adjust to changes in the parameters of the system. In the case of an inventory control procedure these parameters determine the frequency distributions of demand and of lead time. Optimization approaches assume them given along with run-out costs, inventory carrying costs and so forth. The parameters, the costs and some decision rule combine to give an equation representing total cost which is then minimized with respect to the decision rule. There are two difficulties with this approach; first, changes in the parameters do occur which invalidate the results; and secondly, it is very difficult indeed to determine the costs in the model. The proposed servo-system attempts to avoid these two difficulties by not fixing any parameters (distributions) and by omitting any costs in the model, only employing some level of protection against run-out. (Author).