# POM Prof. Tempelmeier GmbH

## Production and Operations Management Consulting.

# Expected backorders: Discrete demand distribution

For a given discrete 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 |

Assumptions:

- discrete probability distribution of demand during lead time.

- Nahmias (1996), Chapter 5