(s,S) Policy

In this chapter of the book, the $(s,q)$ inventory policy is discussed.

Summary of discussed problems:

  • Decision rule
  • Continuous review
  • Period demands (customer order size greater than 1)
  • Periodic review (daily review, undershoot)
  • Service level
  • Backlog at the beginning of a cycle
  • Backlog at the end of a cycle
  • Different methods to find the reorder point
  • Numerical examples for gamma distribution, normal distribution, empirical discrete distribution
  • Average costs