Replenishing an inventory system permitting lost sales under Poisson demand and short lead times: Explicit performance and an efficient algorithm

In-store, on-shelf availability is a key tool that assists sellers to compete in a market whenever store loyalty is low. On the other hand, the increasing incentive to reduce stock places pressure on suppliers to shorten their lead times. In this work, a continuous-review inventory model is developed and investigated, under the assumptions of random demand with a Poisson distribution and an ordering cost. It is further assumed that unsatisfied...