A Model for Continuous-Review Pull Policies in Serial Inventory Systems

In this paper, we construct a model of the steady-state values of on-hand inventory and backorders for each facility of a serial inventory system in which each facility follows a Q, R policy based on installation stock. Such policies are represented by the popular kanban systems as well as more conventional applications of Q, R policies. The descriptive model presented here is intended for optimizing the parameters of such a policy and for obtaining theoretical results about the behavior of the system. We also illustrate the potential of the model for providing insights into system performance.

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