(s,S) Policy
In this chapter of the book, the $(s,q)$ inventory policy is discussed.
Summary of discussed problems:
- Decision rule
- Continuous review
- Period demands (customer order size greater than 1)
- Periodic review (daily review, undershoot)
- Service level
- Backlog at the beginning of a cycle
- Backlog at the end of a cycle
- Different methods to find the reorder point
- Numerical examples for gamma distribution, normal distribution, empirical discrete distribution
- Average costs