A MODEL FOR CONTINUOUS-REVIEW PULL POLICIES IN SERIAL INVENTORY SYSTEMS

In this paper, we construct a model of the steady-state values of on-hand inventory and backorders for each facility of a serial inventory system in which each facility follows a (Q, R) policy based on installation stock. Such policies are represented by the popular kanban systems as well as more conventional applications of (Q, R) policies. The descriptive model presented here is intended for optimizing the parameters of such a policy and for obtaining theoretical results about the behavior of the system. We also illustrate the potential of the model for providing insights into system performance.