Title :
A continuous review (Q, r) model with owned and rented storage facilities
Author_Institution :
Eng. Syst. Manage., American Univ. of Sharjah, Sharjah, United Arab Emirates
Abstract :
In this paper we propose an approximate solution to the inventory stochastic continuous review (Q, r) problem with two storage facilities, an owned warehouse (OW) and a rented warehouse (RW). We show that the reorder point obtained from the (Q, r) model with two warehouses is smaller than the one generated from the unconstrained classical continuous review model and larger than the one derived from the single warehouse model with a storage space constraint. We additionally present other structural properties of the optimal ordering policy with two storage facilities and provide numerical examples to illustrate the models.
Keywords :
production facilities; storage; approximate solution; inventory stochastic continuous review; optimal ordering policy; owned storage facilities; rented storage facilities; rented warehouse; single warehouse model; storage space constraint; structural properties; unconstrained classical continuous review model; Cost function; Engineering management; Environmental economics; Inventory control; Inventory management; Silver; Stochastic processes; Stochastic systems; Systems engineering and theory; Transportation; continuous review; ordering quantity; reorder point; warehouse space;
Conference_Titel :
Computers & Industrial Engineering, 2009. CIE 2009. International Conference on
Conference_Location :
Troyes
Print_ISBN :
978-1-4244-4135-8
Electronic_ISBN :
978-1-4244-4136-5
DOI :
10.1109/ICCIE.2009.5223743