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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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    Abstract

    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.

    Item Type: Article
    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
    Publisher: Elsevier
    Refereed: Yes
    ISSN: 0377-2217
    Funders: Engineering and Physical Sciences Research Council (EPSRC)
    Depositing User: Professor Aris Syntetos
    Date Deposited: 14 Oct 2011 09:50
    Last Modified: 20 Jan 2014 20:53
    URI: http://usir.salford.ac.uk/id/eprint/18314

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