### Abstract

We investigate expressions for expected item fill rate in a periodic inventory system. The typical treatment of fill rate found in many operations management texts assumes infinite horizon, independent and stationary demand. For the case when the horizon is finite, we show that the expected value of the actual fill rate is greater than the value given by the infinite horizon expression. The implication of our results is that an inventory manager in a finite horizon situation who uses the infinite horizon expression to set stocking levels will achieve a higher than desired expected fill rate at greater than necessary inventory expense.

Original language | English (US) |
---|---|

Pages (from-to) | 119-123 |

Number of pages | 5 |

Journal | Operations Research Letters |

Volume | 31 |

Issue number | 2 |

DOIs | |

State | Published - Mar 1 2003 |

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### All Science Journal Classification (ASJC) codes

- Software
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics

### Cite this

*Operations Research Letters*,

*31*(2), 119-123. https://doi.org/10.1016/S0167-6377(02)00233-X

}

*Operations Research Letters*, vol. 31, no. 2, pp. 119-123. https://doi.org/10.1016/S0167-6377(02)00233-X

**On the single item fill rate for a finite horizon.** / Chen, Jiahua; Lin, Dennis K.J.; Thomas, Douglas J.

Research output: Contribution to journal › Article

TY - JOUR

T1 - On the single item fill rate for a finite horizon

AU - Chen, Jiahua

AU - Lin, Dennis K.J.

AU - Thomas, Douglas J.

PY - 2003/3/1

Y1 - 2003/3/1

N2 - We investigate expressions for expected item fill rate in a periodic inventory system. The typical treatment of fill rate found in many operations management texts assumes infinite horizon, independent and stationary demand. For the case when the horizon is finite, we show that the expected value of the actual fill rate is greater than the value given by the infinite horizon expression. The implication of our results is that an inventory manager in a finite horizon situation who uses the infinite horizon expression to set stocking levels will achieve a higher than desired expected fill rate at greater than necessary inventory expense.

AB - We investigate expressions for expected item fill rate in a periodic inventory system. The typical treatment of fill rate found in many operations management texts assumes infinite horizon, independent and stationary demand. For the case when the horizon is finite, we show that the expected value of the actual fill rate is greater than the value given by the infinite horizon expression. The implication of our results is that an inventory manager in a finite horizon situation who uses the infinite horizon expression to set stocking levels will achieve a higher than desired expected fill rate at greater than necessary inventory expense.

UR - http://www.scopus.com/inward/record.url?scp=0037364012&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0037364012&partnerID=8YFLogxK

U2 - 10.1016/S0167-6377(02)00233-X

DO - 10.1016/S0167-6377(02)00233-X

M3 - Article

AN - SCOPUS:0037364012

VL - 31

SP - 119

EP - 123

JO - Operations Research Letters

JF - Operations Research Letters

SN - 0167-6377

IS - 2

ER -