TECHNICAL NOTE—Exact Analysis of a Lost Sales Model Under Stuttering Poisson Demand

Jie Chen, Peter L. Jackson, John A. Muckstadt

Operations Research · 2011 · Volume 59 · Issue 1

Abstract

We investigate the ( S − 1, S ) inventory policy under stuttering Poisson demand and generally distributed lead time when the excess demand is lost. We correct results presented in Feeney and Sherbrooke's seminal paper [Feeney, G. J., C. C. Sherbrooke. 1966. The ( S − 1, S ) inventory policy under compound Poisson demand. Management Sci. 12 (5) 391–411] and note that the stationary distribution of units on order for the general compound Poisson demand case is still an open question.

Keywords

lost sales, stuttering Poisson process, reversible Markov chain

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