On the single item fill rate for a finite horizon

Jiahua Chen, Dennis K.J. Lin, Douglas J. Thomas

Research output: Contribution to journalArticle

32 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)119-123
Number of pages5
JournalOperations Research Letters
Volume31
Issue number2
DOIs
StatePublished - Mar 1 2003

Fingerprint

Finite Horizon
Infinite Horizon
Managers
Operations Management
Inventory Systems
Periodic Systems
Expected Value
Level Set
Horizon
Necessary
Finite horizon
Infinite horizon

All Science Journal Classification (ASJC) codes

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

Cite this

Chen, Jiahua ; Lin, Dennis K.J. ; Thomas, Douglas J. / On the single item fill rate for a finite horizon. In: Operations Research Letters. 2003 ; Vol. 31, No. 2. pp. 119-123.
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On the single item fill rate for a finite horizon. / Chen, Jiahua; Lin, Dennis K.J.; Thomas, Douglas J.

In: Operations Research Letters, Vol. 31, No. 2, 01.03.2003, p. 119-123.

Research output: Contribution to journalArticle

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