Abstract
We consider a generalised ordering policy in which a spare unit for replacement can be delivered only by order after a constant lead time. Introducing the costs for ordering, shortage and holding, we derive the expected cost per unit time in the steady-state. We discuss the optimal ordering policy which minimises the expected cost, and show in a main theorem that the optimal policy is reduced to either one of two typical ordering policies depending on some conditions. We further discuss a similar ordering policy with varying lead times.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have