Crow-fly distance between the depot and delivery points is usually used when considering the problem of locating a depot. Instead, we assume that vans can only travel along a rectangular system of roads. This leads us to a much simpler solution.

In this paper a periodic review stock system using the so-called (S, s) ordering policy is considered. New and more accurate approximations are found for calculating the optimal values of the reorder point s and the minimum order quantity \Delta = S - s. When demands are normally distributed it...