Most inventory models assume that open orders arrive after a lead time that cannot be controlled by the inventory manager. However, in many real world situations inventory managers have the option to expedite open orders. Due to the lack of appropriate models they often have to rely on sub-optimal heuristics to make expediting decisions. In this book the author incorporates an expediting level policy in a periodic-review base-stock inventory model and shows how the optimal solution can be computed. The solution approaches can be implemented easily and are capable of solving large problems efficiently. While the book is mathematically rigorous, the author presents important managerial insights gained from scenario analyses using data from the service division of a global equipment manufacturer.
Raik Özsen is a graduate in Supply Chain Management & Management Science at the University of Cologne and Stanford University.