Expected backorders: discrete demand distribution
For a given probability distribution of the demand during lead time the expected
backorders are computed for different reorder levels.
If the order quantity is given, then it is possible to compute the associated
ß-service level.
Symbols:
Y |
demand during lead time |
P{Y=y} |
probability distribution
of demand during lead time |
s |
reorder point |
E{B|s} |
expected backorders
given a reorder point s |
Assumpions:
- discrete probability distribution of demand during lead time.
Literature:
- Tempelmeier (2006)
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