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Optimal Inventory Policies in Perturbed Demand Models

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  • B. L. Schwartz

    (The MITRE Corporation)

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    Abstract

    Investigation is continued of inventory models in which customer good will is lost when stockout occurs. Several models are formulated and optimal policies for the firm are derived conceptually (i.e., algebraic equations satisfied by the optimal parameter values are determined). Both constant and distributed demand are considered, and it is shown that the same formulation applies to both.

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    File URL: http://dx.doi.org/10.1287/mnsc.16.8.B509
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 16 (1970)
    Issue (Month): 8 (April)
    Pages: B509-B518

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    Handle: RePEc:inm:ormnsc:v:16:y:1970:i:8:p:b509-b518

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    Cited by:
    1. James D. Dana, 2000. "Competition in Price and Availability when Availability is Unobservable," Econometric Society World Congress 2000 Contributed Papers 1450, Econometric Society.
    2. Liberopoulos, George & Tsikis, Isidoros & Delikouras, Stefanos, 2010. "Backorder penalty cost coefficient "b": What could it be?," International Journal of Production Economics, Elsevier, vol. 123(1), pages 166-178, January.
    3. Argon, Nilay Tanik & Gullu, Refik & Erkip, Nesim, 2001. "Analysis of an inventory system under backorder correlated deterministic demand and geometric supply process," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 247-254, May.
    4. Ernst, Ricardo & Powell, Stephen G., 1998. "Manufacturer incentives to improve retail service levels," European Journal of Operational Research, Elsevier, vol. 104(3), pages 437-450, February.
    5. Ernst, Ricardo & Powell, Stephen G., 1995. "Optimal inventory policies under service-sensitive demand," European Journal of Operational Research, Elsevier, vol. 87(2), pages 316-327, December.

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