Design of a continuous review stock policy

Resumen

In stock management system with inventory management policy (s,Q) sometimes managers find that is a spread between the level of service they have calculated and the real one. This is because there are exact and approximate ways of calculating CSL (cycle service level). The former are difficult to calculate (and not typically used in business), and the latter tend to neglect the deviations in the reorder point (also called undershoots) this results in differences mentioned above. This paper presents an structured review of the literature on the methodology to be followed in the design of inventory management policy (s,Q) when demand process is stationary with discrete probability function, independent and identically distributed, and replenishment period L constant and pinpoints the most significant research gaps and also proposes guidelines for the practical application of the most usual approximations. Models are considered for lost sales and backorders.