Determining order-up-to levels under periodic review for compound binomial (intermittent) demand
Teunter, R, Syntetos, A and Babai, M.Z. 2010, 'Determining order-up-to levels under periodic review for compound binomial (intermittent) demand' , European Journal of Operational Research, 203 (3) , pp. 619-624.
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We propose a new method for determining order-up-to levels for intermittent demand items in a periodic review system. Contrary to existing methods, we exploit the intermittent character of demand by modelling lead time demand as a compound binomial process. In an extensive numerical study using Royal Air Force (RAF) data, we show that the proposed method is much better than existing methods at approximating target service levels and also improves inventory-service efficiency. Furthermore, the proposed method can be applied for both cost and service oriented systems, and is easy to implement.
|Uncontrolled Keywords:||Compound binomial (intermittent) demand, periodic stock control, service levels, empirical investigation|
|Themes:||Subjects outside of the University Themes|
|Schools:||Colleges and Schools > College of Business & Law > Salford Business School > Operations and Global Logistics Management|
|Journal or Publication Title:||European Journal of Operational Research|
|Funders:||EPSRC: EP/D062942/1, EPSRC: EP/G006075/1|
|Depositing User:||Professor Aris Syntetos|
|Date Deposited:||14 Oct 2011 09:50|
|Last Modified:||13 Mar 2013 11:33|
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