Inventory management: (s,S) inventory policy with normally distributed
The parameters of a (s,S) inventory policy with periodic (daily) review under
normal distributed demand subject to a ß-service level constraint are computed.
In a first step, Schneider's simple approximation is used. In a second step,
the procedure proposed by Tijms and Groenevelt (1984) is applied. The difference
(S-s) may be entered or computed with the help of the economic order quantity
||expected demand per period
||expected demand during lead time
||variance of the demand during lead time
The optimal values of s and S are directly transferred to the module for the
of a (s,S) inventory policy.
- Tempelmeier (2006)