We propose a new method for determining order-up-to levels for intermittent demand items in a periodic review system. Contrary to existing methods, we exploit the intermittent character of demand by modelling lead time demand as a compound binomial process. In an extensive numerical study using...

Purpose – Spare parts have become ubiquitous in modern societies and managing their requirements is an important and challenging task with tremendous cost implications for the organisations that are holding relevant inventories. An important operational issue involved in the management of...

Objective: To evaluate the cost effectiveness of gemcitabine in the treatment of nonsmall cell lung cancer (NSCLC). Methods: Gemcitabine was compared with best supportive care and gemcitabine/cisplatin was compared with three standard chemotherapies and four other novel chemotherapy...

The standard method to forecast intermittent demand is that by Croston. This method is available in ERP type solutions such as SAP and specialised forecasting software packages (e.g. Forecast Pro), and often applied in practice. It uses exponential smoothing to separately update the estimated...

We analyse a single echelon single item inventory system where the demand and the lead time are stochastic. Demand is modelled as a compound Poisson process and the stock is controlled according to a continuous time order-up-to (OUT) level policy. We propose a method for determining the optimal...

In forecasting and inventory control textbooks and software applications, the variance of the cumulative lead-time forecast error is, almost invariably, taken as the sum of the error variances of the individual forecast intervals. For stationary demand and a constant lead time, this implies...