Accounting for residual stock in continuous review coordinated control of a family of items

Inventory models which permit coordinated control (or joint replenishment) of families of items are of considerable interest in practice. A major complexity in coordinated control is that, typically, one item triggers the family order and the other items have stock remaining above their reorder points. Account should be taken of this so-called residual stock when establishing the reorder points. In this paper, modelling the inventory position …