Operating Characteristics of the (S − 1, S) Inventory System with Partial Backorders and Constant Resupply Times

In this paper we consider an (S − 1, S) inventory system with Poisson demand and constant resupply times. An arriving customer facing stockout will either backorder or withdraw its order. Expressions describing steady state operating characteristics of the system and the expected total cost rate are developed. Furthermore, the behavior of the expected total cost rate as the function of the relevant parameters is explored.