This monograph is about a class of single-item (s, S) inventory systems that can be investigated through renewal theory. These systems are characterized by: 1) independent, identically distributed (i.i.d.) batch sizes (quantities demanded) separated by i.i.d. interdemand times, 2) full backlogging of unfilled demand, and 3) a constant procurement lead time. The first two representations give rise to a simple regenerative structure, and the constant rather than random lead times result in additional simplifications. Included are both continuous review and periodic review systems, with the latter being treated as a special case of the former.
KeywordsLead Time Optimal Policy Shortage Cost Inventory Position Lead Time Demand
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