Details

Autor(en) / Beteiligte

• Duc, Nguyen Trong Tri
• Tai, Pham Duc
• Buddhakulsomsiri, Jirachai

Titel

Approximating Measures of Performance of a Periodic Review Inventory System by Using Markov Chain

Ist Teil von

• 2020 IEEE 7th International Conference on Industrial Engineering and Applications (ICIEA), 2020, p.543-547

Ort / Verlag

IEEE

Erscheinungsjahr

2020

Quelle

IEEE Electronic Library Online

Beschreibungen/Notizen

• This study focuses on a stochastic inventory control problem of the order-up-to-level periodic review system. The inventory status is tracked every regularly fixed period and replace an order to raise the inventory level up to a predefined point. Unsatisfied customers' demand is considered as totally lost. Warehouse's capacity is also taken into account, while excessive units are stored in a rented warehouse. The replenishment lead time is considered as discrete and stochastic. To study this stochastic inventory problem, where demand during protection interval is modeled using an empirical distribution, a Markovian approach is proposed to handle uncertainties. By using this Markov Chain, accurate approximations of system measures of performance, i.e., the expected inventory on-hand, expected shortage and expected over-storage amounts can be obtained.