The exact fill rate in a periodic review base stock system under normally distributed demand

In this paper, we consider a periodic review order-up-to-level (or base stock) inventory control system under normally distributed demand. For such circumstances, an expression for the exact fill rate (fraction of demand satisfied without backordering) has been available in the literature, but has n...

Full description

Saved in:
Bibliographic Details
Published in:Omega (Oxford) 2011-06, Vol.39 (3), p.346-349
Main Authors: Silver, Edward A., Bischak, Diane P.
Format: Article
Language:English
Subjects:
Applied sciences
Base stock
Demand
Exact sciences and technology
Fill rate
Inventory control
Inventory control Base stock Fill rate Normal distribution
Inventory control, production control. Distribution
Normal distribution
Operational research and scientific management
Operational research. Management science
Operations research
Pedagogy
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this paper, we consider a periodic review order-up-to-level (or base stock) inventory control system under normally distributed demand. For such circumstances, an expression for the exact fill rate (fraction of demand satisfied without backordering) has been available in the literature, but has not been widely known, let alone used by practitioners. In this paper, we redevelop the expression and contrast our derivation with the earlier published one. The paper has two purposes. First, we hope that the reappearance of the exact result in this journal will lead to its wider adoption. Second, showing two contrasting approaches to obtaining the same result may be useful for both research and pedagogical purposes.
ISSN:0305-0483
1873-5274
DOI:10.1016/j.omega.2010.08.003