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• W2038861027 abstract "Full-cost inventory models are mostly studied in the literature, whereas service level constraints are more common to be observed in practical settings. In this paper, we consider periodic review inventory systems with service level restrictions. The control of such inventory systems is limited to (s, S)-type policies in the literature. To the best of our knowledge, we are the first authors to compare such policies with optimal replenishment policies, and illustrate an average cost difference of 0.64%. This justifies the use of these popular (s, S) policies in practice. Furthermore, we propose a new one-dimensional search procedure that is bounded to set the reorder level s and order-up-to level S, whereas the solution space is unbounded and two dimensional. Our heuristic procedure is guaranteed to satisfy the service level constraint and numerical experiments illustrate that it results in an average cost deviation of 1–2% compared with the best (s, S) policy. Consequently, it significantly outperforms all existing procedures from literature, both in service and costs." @default.
• W2038861027 created "2016-06-24" @default.
• W2038861027 creator A5087505263 @default.
• W2038861027 date "2014-12-01" @default.
• W2038861027 modified "2023-10-03" @default.
• W2038861027 title "Periodic review inventory systems with a service level criterion" @default.
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• W2038861027 doi "https://doi.org/10.1057/jors.2013.160" @default.
• W2038861027 hasPublicationYear "2014" @default.
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