A Note on the Heuristic for Replenishment of Trended Inventories Considering Shortages

Abstract

We discuss the inventory replenishment policy for an item having a deterministic demand pattern with a linear (positive) trend and shortages. A heuristic is developed to determine the decision rule for selecting the times and sizes of replenishments over a finite time-horizon so as to keep the total costs minimum. The use of the heuristic is illustrated with a numerical example.