Department of Industrial Engineering, Sharif University of Technology, Tehran, Zip 14588-89694, Iran
Abstract
In this paper, we compare four ordering policies in a lost sales inventory model with zero ordering cost, constant lead time, and Poisson demand process. These ordering policies are 1) base stock policy, 2) full delay policy, 3) simple delay policy and 4) a recently developed ordering policy called (1, T) or one for one period policy. Our work can be considered as an expansion of a previous research which compared the first three policies. We show that, for any fixed value of the ratio of unit lost sales cost over unit holding cost, there is a specific value of lead time demand beyond which the cost of (1, T) policy is lower than the costs of other three policies. Furthermore, the superiority of (1, T) policy is more significant for low values of the above ratio and becomes more pronounced as the lead time demand increases.
Haji, R., Tayebi, H. (2015). Comparing four ordering policies in a lost sales inventory model with Poisson demand and zero ordering cost. Scientia Iranica, 22(3), 1294-1298.
MLA
Rasoul Haji; Hamed Tayebi. "Comparing four ordering policies in a lost sales inventory model with Poisson demand and zero ordering cost". Scientia Iranica, 22, 3, 2015, 1294-1298.
HARVARD
Haji, R., Tayebi, H. (2015). 'Comparing four ordering policies in a lost sales inventory model with Poisson demand and zero ordering cost', Scientia Iranica, 22(3), pp. 1294-1298.
VANCOUVER
Haji, R., Tayebi, H. Comparing four ordering policies in a lost sales inventory model with Poisson demand and zero ordering cost. Scientia Iranica, 2015; 22(3): 1294-1298.
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