We describe the development of a framework to compute the optimal inventory policy for <p> a large spare-parts’ distribution centre operation in the RA division of the Danfoss Group <p> in Denmark. The RA division distributes spare parts worldwide for cooling and A/C <p> systems. The warehouse...</p></p></p>

We develop an algorithm to compute an optimal Q(s,S) policy for the joint replenishment problem when demands follow a compound correlated Poisson process. It is a non-trivial generalization of the work by Nielsen and Larsen (2005). We make some numerical analyses on two-item problems where we...

We derive a closed-form cost expression for an (R,s,nQ) inventory control policy where all replenishment orders have a constant lead-time, unfilled demand is backlogged and inter-arrival times of order requests are generalized Erlang distributed

We consider a base stock inventory control system serving two customer classes whose demands are generated by two independent compound renewal processes. We show how to derive order and volume fill rates of each class. Based on assumptions about first order stochastic dominance we prove when one...

The order fill rate is less commonly used than the volume fill rate (most often just denoted fill rate) as a performance measure for inventory control systems. However, in settings where the focus is on filling customer orders rather than total quantities, the order fill rate should be the...

In this note we comment on whether the cost rate function of Model 2 of Rosling (2002) is exact

We explore a base-stock system with backlogging where the demand process is a compound renewal process and the compound element is a delayed geometric distribution. For this setting it is proven in [4] that the long-run average service measures order fill rate (OFR) and volume fill rate (VFR)...

We study an inventory system controlled by a base stock policy assuming a compound renewal demand process. We extend the base stock policy by incorporating rules for degrading the service of larger orders. Two specific rules are considered, denoted Postpone(q,t) and Split(q), respectively. The...

We review the paper of Özkaya et al. (2006). Though the mathematical derivations seem technically correct, we have some reservations about their numerical results.