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 models Numerical methods of truncation Repeated attempts Stationary distribution