Determining order-up-to levels under periodic review for compound binomial (intermittent) demand

R. H. Teunter*, A. A. Syntetos, M. Z. Babai

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

62 Citaten (Scopus)


We propose a new method for determining order-up-to levels for intermittent demand items in a periodic review system. Contrary to existing methods, we exploit the intermittent character of demand by modelling lead time demand as a compound binomial process. in an extensive numerical study using Royal Air Force (RAF) data, we show that the proposed method is much better than existing methods at approximating target service levels and also improves inventory-service efficiency. Furthermore, the proposed method can be applied for both cost and service oriented systems, and is easy to implement. (C) 2009 Elsevier B.V. All rights reserved.

Originele taal-2English
Pagina's (van-tot)619-624
Aantal pagina's6
TijdschriftEuropean Journal of Operational Research
Nummer van het tijdschrift3
StatusPublished - 16-jun.-2010

Citeer dit