• About
  • Policies
  • What is open access
  • Library
  • Contact
Advanced search
      View Item 
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Business Administration
      • Department of Management
      • View Item
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Business Administration
      • Department of Management
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      A serial inventory system with lead-time-dependent backordering: A reduced-state approximation

      Thumbnail
      View / Download
      1.5 Mb
      Author(s)
      Berk, Emre
      Toy, Ö. A.
      Date
      2022-05-04
      Source Title
      IISE Transactions
      Print ISSN
      2472-5854
      Electronic ISSN
      2472-5862
      Publisher
      Taylor & Francis Inc.
      Volume
      55
      Issue
      3
      Pages
      259 - 270
      Language
      English
      Type
      Article
      Item Usage Stats
      5
      views
      6
      downloads
      Abstract
      We study a serial inventory system where the external customers may have a maximum time that they would be willing to wait for delivery in cases of stock-out and the demand would be lost if the remaining delivery lead time of the next available item is longer. This lead-time-dependent backordering behavior subsumes the models of partial backordering regardless of the wait that a customer would experience. In the inventory literature, this behavior has only been analyzed in single-location settings. We study this behavior in a multi-stage setting. We consider continuous review (S−1,S) policies at all stages facing external Poisson demands. Using the method of supplementary variables, we define the stochastic process representing the inventory system and obtain the expressions for the operating characteristics of the inventory system. Based on the solution structures for the special cases, we propose an approximate solution which rests on replacing the state-dependent purchasing decision of the customer with an averaged-out purchase probability computed using only the age of the oldest item. An extensive numerical study indicates that the proposed approximation performs very well. Our numerical study provides additional insights about the sensitivity and allocation of stock levels across stages.
      Keywords
      Inventory theory and control
      Multi-echelon inventory
      Lead-time-dependent backordering
      Method of supplementary variables
      Permalink
      http://hdl.handle.net/11693/111702
      Published Version (Please cite this version)
      https://doi.org/10.1080/24725854.2022.2057625
      Collections
      • Department of Management 639
      Show full item record

      Browse

      All of BUIRCommunities & CollectionsTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCoursesThis CollectionTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCourses

      My Account

      Login

      Statistics

      View Usage StatisticsView Google Analytics Statistics

      Bilkent University

      If you have trouble accessing this page and need to request an alternate format, contact the site administrator. Phone: (312) 290 2976
      © Bilkent University - Library IT

      Contact Us | Send Feedback | Off-Campus Access | Admin | Privacy