This article has treated inventory processes in which a fraction b of demand during the stockout period is backordered and the remainder is lost forever. In addition to a deterministic model heuristic, approximate treatments of reorder point and periodic review models for stochastic demand have been briefly considered. These models are representative of the real nature of inventory systems, and may be useful for the practical solution of inventory problems.
ASJC Scopus subject areas
- Modeling and Simulation
- Ocean Engineering
- Management Science and Operations Research