A note on optimal policies for a periodic inventory system with emergency orders

Chi Chiang*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Scopus citations

Abstract

In this article, we develop a dynamic programming model for a periodic review inventory system in which emergency orders can be placed at the start of each period, while regular orders are placed at the beginning of an order cycle (which consists of a number of periods). We assume that the regular and emergency supply lead times differ by one period. We devise a simple algorithm of computing the optimal policy parameters. Thus, the ordering policy developed is easy to implement.

Original languageEnglish
Pages (from-to)93-103
Number of pages11
JournalComputers and Operations Research
Volume28
Issue number2
DOIs
StatePublished - Feb 2001

Keywords

  • Dynamic programming
  • Inventory model
  • Optimization
  • Periodic review

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