On the relation between cost and service models for general inventory systems

Geert-Jan van Houtum, Willem H.M. Zijm

Research output: Book/ReportReportProfessional

34 Citations (Scopus)
40 Downloads (Pure)

Abstract

In this paper, we present a systematic overview of possible relations between cost and service models for fairly general single- and multi-stage inventory systems. In particular, we relate various types of penalty costs in pure cost models to equivalent types of service measures in service models. We show how an optimal policy for a service model may be obtained from cost-optimal policies in a related pure cost model. Pure cost models have been studied extensively in the literature. By our results it seems possible to transform many of the known optimal solutions for pure cost models to service models, which are more appropriate from a practical point of view. A number of examples are discussed to show the generality and the possibly far reaching consequences of the results.
Original languageUndefined
Place of PublicationEnschede
PublisherUniversity of Twente, Department of Applied Mathematics
Number of pages23
ISBN (Print)0169-2690
Publication statusPublished - 2000

Publication series

NameMemorandum / Faculty of Mathematical Sciences
PublisherDepartment of Applied Mathematics, University of Twente
No.1522
ISSN (Print)0169-2690

Keywords

  • MSC-90B05
  • EWI-3342
  • METIS-206071
  • IR-65710

Cite this

van Houtum, G-J., & Zijm, W. H. M. (2000). On the relation between cost and service models for general inventory systems. (Memorandum / Faculty of Mathematical Sciences; No. 1522). Enschede: University of Twente, Department of Applied Mathematics.
van Houtum, Geert-Jan ; Zijm, Willem H.M. / On the relation between cost and service models for general inventory systems. Enschede : University of Twente, Department of Applied Mathematics, 2000. 23 p. (Memorandum / Faculty of Mathematical Sciences; 1522).
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van Houtum, G-J & Zijm, WHM 2000, On the relation between cost and service models for general inventory systems. Memorandum / Faculty of Mathematical Sciences, no. 1522, University of Twente, Department of Applied Mathematics, Enschede.

On the relation between cost and service models for general inventory systems. / van Houtum, Geert-Jan; Zijm, Willem H.M.

Enschede : University of Twente, Department of Applied Mathematics, 2000. 23 p. (Memorandum / Faculty of Mathematical Sciences; No. 1522).

Research output: Book/ReportReportProfessional

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van Houtum G-J, Zijm WHM. On the relation between cost and service models for general inventory systems. Enschede: University of Twente, Department of Applied Mathematics, 2000. 23 p. (Memorandum / Faculty of Mathematical Sciences; 1522).