Crossover aware base stock decisions for service-driven systems

The authors investigate the impact of order crossover on a periodic, order-up-to (R,S) inventory system where attaining a target service level is the focus. They first address two crossover related assumptions and then explore five methods of including crossover information into the process of determining the order-up-to level (S). The authors develop a hybrid discrete-event/continuous simulation model and perform a full-factorial simulation study under various conditions of target service level, demand variance, and lead-time variance. They find the method used to include crossover information into the decision significantly impacts service performance and that methods based on effective lead-time observations perform best.


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  • Accession Number: 01673094
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 29 2018 11:12AM