Artalejo Rodríguez, Jesús ManuelKrishnamoorthy, A.López Herrero, María Jesús2023-06-202023-06-202006-010254-533010.1007/s10479-006-5294-8https://hdl.handle.net/20.500.14352/49990The authors thank the referees for their constructive comments on an earlier version of the paper. The research of J.R. Artalejo and M.J. Lopez-Herrero was supported by the project BFM2002-02189. A. Krishnamoorthy acknowledges UGC (India) for the support through Research Award F.30-97/98/SA-III.This paper deals with a continuous review (s, S) inventory system where arriving demands finding the system out of stock, leave the service area and repeat their request after some random time. This assumption introduces a natural alternative to classical approaches based either on lost demand models or on backlogged models. The stochastic model formulation is based on a bidimensional Markov process which is numerically solved to investigate the essential operating characteristics of the system. An optimal design problem is also considered.engjournal articlehttp://www.springerlink.com/content/527800g4225334n0/http://www.springerlink.com/restricted access519.8Inventory modelsNumerical methods of truncationRepeated attemptsStationary distributionInvestigación operativa (Matemáticas)1207 Investigación Operativa