Single item inventory control under periodic review and a minimum order quantity

Effective inventory control policies with a minimum order quantity and batch ordering

“…The most closely related papers to our work are Zhou et al (2007) and Kiesmuller et al (2011). Zhou et al (2007) propose a two-parameter heuristic policy for a stochastic inventory system with MOQ requirement and demonstrate that the performance of this policy is close to the optimal policy except for a few cases when the coefficient of the demand distribution is very small.…”

“…Zhou et al (2007) propose a two-parameter heuristic policy for a stochastic inventory system with MOQ requirement and demonstrate that the performance of this policy is close to the optimal policy except for a few cases when the coefficient of the demand distribution is very small. Kiesmuller et al (2011) propose a simpler policy, which has only one parameter S. This policy works as follows: no order is placed when the inventory position is not less than the level S; otherwise an order is placed to raise the inventory to S. However, if this order is smaller than the MOQ, the order quantity is increased to the MOQ. The authors show the effectiveness of this policy and develop simple newsvendor inequalities for near-optimal policy parameters.…”

Optimization via Simulation for Inventory Control Policies and Supplier Selection

“…After scanning the literature, we determined that there is a number of studies performed to analyse (s, S) policies. For example, the optimality of (s, S) policy is proven assuming linear holding and stockout costs, and fixed ordering costs [1]. Hollier et al [2] formed (s, S) policy using mathematical model where products experience lumpy demand patterns and cutoff transaction size is incorporated into the policy.…”

Managing disruption in an imperfect production–inventory system

“…A few examples of such studies include: a single item inventory system with a non-stationary demand process in a single stage production inventory system (Graves, 1999), a periodic review stochastic inventory system (Chan and Song, 2003), determination of lot size and order level for a single item, single stage inventory model with a deterministic time-dependent demand (Dave, 1989), a single item and single stage inventory system with stochastic demand in a periodic review where the system must order either none, or at least as much, as a minimum order quantity (Kiesmüller, De Kok, and Dabia, 2011) and to analyse three inventory models; a replenishment batching policy, a production batching policy, and an integrated replenishment/production batching policy (Rau and OuYang, 2007).…”