An Analysis of a Single Item Inventory System with Returns: The Single Echelon Case

摘要

Inventory systems with returns are systems in which there are units returned in a repairable state, as well as demands for units in a serviceable state, where the return and demand processes are independent. We consider the inventory control of a single item at a single location in which the stationary return rate is less than the stationary demand rate. This necessitates an additional occasional procurement of units from an outside source. The objectives of this paper are to develop a cost model of this system managed under a continuous review procurement policy, and to develop a solution method for finding the policy parameter values. The key to the analysis is the use of a normally distributed random variable to approximate the steady-state distribution of net inventory. (Author)