TECHNICAL NOTE—Exact Analysis of a Lost Sales Model Under Stuttering Poisson Demand

Jie Chen · Peter L. Jackson · John A. Muckstadt

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Supply Chain and Inventory Management Reliability and Maintenance Optimization Advanced Queuing Theory Analysis

Abstract

We investigate the (S − 1, S) inventory policy under stuttering Poisson demand and generally distributed lead time when the excess demand is lost. We correct results presented in Feeney and Sherbrooke's seminal paper [Feeney, G. J., C. C. Sherbrooke. 1966. The (S − 1, S) inventory policy under compound Poisson demand. Management Sci. 12(5) 391–411] and note that the stationary distribution of units on order for the general compound Poisson demand case is still an open question.

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1992Production and Operations Analysis 2002Foundations of Stochastic Inventory Theory 1960Studies in the Mathematical Theory of Inventory and Production 1966The (S − 1, S) Inventory Policy Under Compound Poisson Demand 1980Continuity of Generalized Semi-Markov Processes 1991An (S − 1, S) Inventory System with Emergency Orders 2003A New Decision Rule for Lateral Transshipments in Inventory Systems 1979Simple Approximations for a Variety of Dynamic Leadtime Lost-Sales Inventory Models

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2021Robust compound Poisson parameter estimation for inventory control 2024Inventory management with actual palletized transportation costs and lost sales

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