The discounted (R,Q) inventory model : The Shrewd Accountant's Heuristic

• The discounted continuous-review (R,Q) inventory model with continuous and stochastic demand is investigated.  New optimality conditions are derived, clarifying the difference to the average cost case, also graphically. Supported by depreciation theory, applied to the value of a setup, the results suggest an insightful and very precise approximation – The Shrewd Accountant’s Heuristic – based on a new average-cost model. It deepens and extends the work of Hadley (1964). Three examples are worked out in detail and the model is generalized to Poisson demand and to stochastic lead-times.

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering (hsv//eng)

Nyckelord

Discounting

Average cost

(R

Q) inventorypolicies

Depreciations

Interestrates

Maskinteknik

Mechanical Engineering

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)