Two Periodic Review inventory Models with Backorders and Stuttering Poisson Demands

Two periodic review inventory models, (R, T) and (nQ, r, T), are analyzed for the situation where demands are characterized by either a Poisson or stuttering Poisson process. In each model, backorders are allowed and the procurement lead time is considered to be a constant. Average annual cost equations are developed for each model and solution techniques presented, so that minimum average annual costs can be determined. A numerical example is also presented. It is shown for large times between reviews that the (R, T) and (nQ, r, T) models are essentially equivalent.