Multiple replenishment orders in a continuous-review inventory system with lost sales

For a continuous-review inventory system with lost sales, non-unit-sized demand, multiple replenishment orders outstanding, and split deliveries, we derive the stationary distribution of the on-hand inventory using a level-crossing methodology. This distribution is then used to formulate an exact expression for the long-run average cost per unit time, Some numerical results are also presented. (C) 2002 Elsevier Science B.V. All rights reserved.