A SIMPLE COST MINIMIZATION PROCEDURE FOR THE (Q,R) INVENTORY MODEL: DEVELOPMENT AND EVALUATION

1 March 1993

journal article
research article
Published by Taylor & Francis in IIE Transactions

Vol. 25 (2) , 45-53
https://doi.org/10.1080/07408179308964276

Abstract

This paper presents a very effective procedure for determining the optimal lot size and reorder point for the popular Hadley-Whitin continuous-review (Q,R) model. It is simpler than earlier approaches. Most importantly, the procedure handles non-normal lead-time demands very easily. Extensive test results are presented to confirm the procedure's accuracy for a wide range of parameter-values and leadt-time-demand distributions.

Keywords

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