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Unformatted text preview: PAGE 293 2 inventory levels are defined (s,S): o Review interval: T o On-hand inventory: I t o At the review point, if: I t < s, order S-I t I t > s, do not order Advantage over (S,T) systems: o Reasonable order quantity is placed o Useful when both review and ordering costs are significant Estimates for s and S can be obtained by computing (Q,R) and letting: o s = R o S = R + Q Common in industry...
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This note was uploaded on 02/12/2010 for the course ISE 410 at USC.