Artalejo, J.R., Krishnamoorthy, A. & Lopez-Herrero, M.J. Ann Oper Res (2006) 141: 67. doi:10.1007/s10479-006-5294-8
This paper deals with a continuous review (s,S) inventory system where arriving demands finding the system out of stock, leave the service area and repeat their request after some random time. This assumption introduces a natural alternative to classical approaches based either on lost demand models or on backlogged models. The stochastic model formulation is based on a bidimensional Markov process which is numerically solved to investigate the essential operating characteristics of the system. An optimal design problem is also considered.
Inventory modelsNumerical methods of truncationRepeated attemptsStationary distribution