Abstract
The conventional reorder point system has been studied by many researchers, and is still an important issue in inventory management. In the continuous review system, the reorder point is set as an inventory level so that the shortage rate during the procurement lead time becomes less than or equal to the specified allowable level. The conventional design of the reorder point is based on the assumption that demand follows a normal distribution. However, this assumption is not always appropriate. In this study, the design of the reorder point using the limited demand information is proposed.
| Original language | English |
|---|---|
| Pages (from-to) | 21-24 |
| Number of pages | 4 |
| Journal | Journal of Japan Industrial Management Association |
| Volume | 62 |
| Issue number | 1 |
| Publication status | Published - Apr 15 2011 |
| Externally published | Yes |
Keywords
- Allowable shortage rate
- Limited demand information
- Reorder point system
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics