Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 31103
Calculation of Reorder Point Level under Stochastic Parameters: A Case Study in Healthcare Area

Authors: Serap Akcan, Ali Kokangul

Abstract:

We consider a single-echelon, single-item inventory system where both demand and lead-time are stochastic. Continuous review policy is used to control the inventory system. The objective is to calculate the reorder point level under stochastic parameters. A case study is presented in Neonatal Intensive Care Unit.

Keywords: stochastic demand, Inventory control system, reorder point level, stochastic lead time

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1072854

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 3057

References:


[1] A. ┼×at─▒r and D. Cengiz, "Medicinal Inventory Control in a University Health Centre," Journal of the Operational Research Society, 38(5), 1987, pp. 387-395. W.-K. Chen, Linear Networks and Systems (Book style). Belmont, CA: Wadsworth, 1993, pp. 123-135.
[2] M. Çakanyildirim, J. H. Bookbinder and Y. Gerchak, "Continuous review inventory models where random lead-time depends on lot size and reserved capacity," International Journal of Production Economics, 68, 2000, pp. 217-228.
[3] M. K. Salameh, N.E. Abboud, A. N. El-Kassar and R. E. Ghattas, "Continuous review inventory model with delay in payments," Int. J. Production Economics, 85, 2003, pp. 91-95.
[4] M. Seifbarghy and M. R. A. Jokar, "Cost evaluation of a two-echelon inventory system with lost sales and approximately Poisson demand," Int. J. Production Economics, 102, 2006, pp. 244-254.
[5] X. Chen and D. Simchi-Levi, "Coordinating inventory control and pricing strategies: The continuous review model," Operations Research Letters, 34, 2006, pp. 323 - 332.
[6] E. Mohebbi and D. Hao, "When supplier-s availability affects the replenishment lead-time: An extension of the supply-interruption problem," European Journal of Operational Research, 175, 2006, pp. 992-1008.
[7] S. Axsäter, "A simple procedure for determining order quantities under a fill rate constraint and normally distributed lead-time demand," European Journal of Operational Research, 174, 2006, pp. 480-491.
[8] R. M. Hill, "Continuous-review, lost-sales inventory models with Poisson demand, a fixed lead-time and no fixed order cost," European Journal of Operational Research, 176, 2007, pp. 956-963.
[9] R. M. Hill, M. Seifbarghy and D. K. Smith, "A two-echelon inventory model with lost sales," European Journal of Operational Research, 181, 2007, pp. 753-766.
[10] E. Kopytov, L. Greenglaz, A. Muravyov, E. Puzinkevich, "Modelling of two strategies in inventory control system with random lead time and demand," Computer Modelling and New Technologies, 11 (1), 2007, pp. 21-30.
[11] M. A. Darwish, "Joint determination of order quantity and reorder point of continuous review model under quantity and freight rate discounts," Computers & Operations Research, 35 (12), 2008, pp. 3902- 3917.
[12] M. Z. Babai, Z. Jemai and Y. Dallery, "Analysis of Order-Up-To-Level Inventory Systems with Compound Poisson Demand," European Journal of Operational Research, 210 (3), 2010, pp. 552- 558.
[13] A. Kokangul, A. Ozkan, S. Akcan, K. Ozcan and M. Narli, "Statistical Analysis of Patients- Characteristics in Neonatal Intensive Care Units," Journal of Medical Systems, 34 (4), 2010, pp. 471-478.
[14] W. D. Kelton, R. P. Sadowski and D. A. Sadowski, Simulation with Arena. McGraw-Hill, Inc., New York, USA, 2002.
[15] R. G. Sargent, "Verification and Validation of Simulation Models," Proceedings of the 1998 Winter Simulation Conference, pp. 121-130.