IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v7y1961i3p304-315.html
   My bibliography  Save this article

FIFO and LIFO Policies in Inventory Management

Author

Listed:
  • Samuel Eilon

Abstract

Evaluation of FIFO (-first in first out) versus LIFO (-last in first out) policies in stock depletion problems has hitherto been based on the classification of field life functions as convex and concave, the optimal policy for n > 2 units being determined when the optimal policy for n - 2 units is known. This paper suggests a test for selecting the optimal policy for the n - 2 system, for field life functions with a derivative equal or larger than -1, and by induction the conclusions are extended to n > 2. When the derivative is smaller than -1, LIFO is shown to be an optimal policy.

Suggested Citation

  • Samuel Eilon, 1961. "FIFO and LIFO Policies in Inventory Management," Management Science, INFORMS, vol. 7(3), pages 304-315, April.
    • Handle: RePEc:inm:ormnsc:v:7:y:1961:i:3:p:304-315
    DOI: 10.1287/mnsc.7.3.304
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.7.3.304
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.7.3.304?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:7:y:1961:i:3:p:304-315. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.