An inventory control system with a regular review reorder base is inappropriate for slow-moving items. Under this periodic review environment, there are many periods in which no demand occurs and thus no replenishment is needed. In the current paper, a model that makes a replenishment decision at the time when demand transaction occurs is proposed. The study develops a simple graphical aid for choosing appropriate replenishment size in consistence with the desired service level without explicitly calculating the reorder point by assuming that the three variables - demand size, demand intensity and lead time, are all Gamma distributed.
All Science Journal Classification (ASJC) codes
- Electronic, Optical and Magnetic Materials
- Atomic and Molecular Physics, and Optics
- Safety, Risk, Reliability and Quality
- Condensed Matter Physics
- Surfaces, Coatings and Films
- Electrical and Electronic Engineering