New algorithms for (Q,r) systems with complete backordering using a fill-rate criterion |
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Authors: | Candace Arai Yano |
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Abstract: | We present an algorithm which determines optimal parameter values for order quantity-reorder point systems with complete backordering. The service level is measured as fraction of demand satisfied directly from shelf, also known as “fill-rate.” This algorithm differs from existing algorithms because an exact cost function is used rather than an approximation. We also present a new heuristic algorithm, which is more efficient computationally than the optimal procedure and provides excellent results. Results of extensive computational experience also are reported. |
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