Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Periodic Review Systems

No description
by

Luis Jesús Pérez Rivera

on 19 November 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Periodic Review Systems

M Sc. Luis Jesús Pérez Rivera
MSc.ljperez@gmail.com
Periodic Review Systems
(S,T) model
S: Inventory target level
T: Revision Period Length
In each revision if the positional inventory (Xt) is less than S, an order for Q=S-Xt units is issued
Xt=It+Ot-Bt (Positional = In hand + On transit - backorder)
ASSUMING normality...
in stock probability
out of stock probability
S
is the (1-alpha) percentile of the RLTD, despite the probability distribution type.
a) By convenience (once a month, every Friday, etc.)

or

b) Analizing the model from the EOQ perspective yields the formula*:
* Assuming a deterministic lead-time smaller than the revision period length.
Revision period setting
The same policies apply to both continuous and periodic review systems:

a) In-Stock probability
b) Fillrate

Assuming normality:
Service level policies
Jones, the owner of a a coffee shop, estimates the annual demand for certain kind of coffee bean is normally distributed with a mean of 240 lb and a std. deviation of 32 lb. The lead time is 0.5 months. Jones adopts a periodic review policy (S,T) to control the inventory, with a revision period length of 1 month. He wants to calculate the inventory target with each service level policy @ 95%.
Optional replenishment system (s,S)
Often called min-max system.
The test is done using the on-hand inventory rather than the positional inventory.
Two inventory levels are defined
s
and
S
.
The review interval is
T
.

Full transcript