Newsvendor equations for optimal reorder levels of serial inventory systems with fixed batch sizes

摘要

We consider a stochastic serial inventory system with a given fixed batch size per stage and linear inventory holding and penalty costs. For this system, echelon stock (R, nQ) policies are known to be optimal. On the basis of new average costs formulas, we obtain newsvendor equations for the optimal reorder levels. (c) 2008 Elsevier B.V. All rights reserved.