The Expected Average Inventory Level for an S, S-1
policy is the inventory level
that we expect given an lead time demand level
and an initial stocking level
.
Examples
The initial stocking level
is 1
and our lead time demand
is 1
. The Expected Average Inventory Level is 0.5
.
The initial stocking level
is 10
and our lead time demand
is 19
. The Expected Average Inventory Level is 0.5
.
The initial stocking level
is 10
and our lead time demand
is 5
. The Expected Average Inventory Level is 5.5
.