A New Method for Determining Q and r in a Poisson Demand, Constant Procurement Lead-Time Inventory Model

摘要

A new and simplified method for computing the reorder quantity, Q, and the reorder point, r, for a single item, single location inventory problem is presented. It is assumed that costs are unchanging over time, that demand occurs according to a Poisson process, and that the procurement lead time is a constant. The solution is obtained by using an approximation of the steady-state distribution of net inventory. The proposed method is shown to be highly accurate and to require less computational effort than needed when using a standard algorithm.