International Journal of Production Research · 1975 · 59 citations · 7 references
ManagementIndustrial EngineeringOperations ManagementInventory ControlInventory ManagementProcess ControlInventory Control SystemsInventory CoordinationInventory Management SystemsInventory Replenishment SystemsInventory SystemsInventory TheoryCompound Poisson DistributionsCompound Poisson ModelsCompound Poisson ProcessesControl System ModelingInventory Control ModelsInventory ReplenishmentReplenishmentReplenishment Lead Time
SUMMARY Often coordination of items for replenishment purposes can lead to significant savings in the costs of replenishment. This article presents a reasonable procedure for determining the values of the various control variables of an (S, c, e) control system, namely the Order-up-to-levels, the can-order points and the must-order points. It is assumed that demand is compound Poisson and the replenishment lead time is of negligible duration. Comparison with the best independent control strategy indicates that substantial savings (averaging 15-9% over some 64 examples) are possible through coordination of replenishments.
7
Compound Poisson Distributions
R. M. Adelson · Journal of the Operational Research Society · 1966 · 162 citations
Alan Stuart, B. L. van der Waerden · Economica · 1970 · 116 citations