Optimal Order Quantity of Electric Power Materials with Compound Poisson Demand Distribution
JIANG Aiping
XIA Hao
GAO Junjun
CHI Qiuguo
WU Siyu
Abstract：This paper is set in Shanghai Electric Power Company′s material supply system , providing the algorithm of optimal order quantity of power supplies that follow compound Poisson distribution for inventory management strategy .Establishing inventory cost model based on compound Poisson distribution , with op-timal order quantity produced by a closed algorithm given the minimum inventory costs .This algorithm is applied to power supplies in empirical analysis .Numerical results show that the algorithm of optimal order quantity proposed in this paper is more suitable for intermittent demand compared to the traditional news -boy model .Considering the problem of inconvenience and inefficiency in business practice , this paper pro-poses an approximation algorithm and a heuristic algorithm , which can calculate the optimal order quantity quickly and efficiently .
Keywords：intermittent demandcompound Poisson distributionoptimal order quantityheuristics algo-rithmapproximation algorithm
Publication Date：2016-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：6( 90-95 )