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On the Structure of Lost-Sales Inventory Models

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  • Paul Zipkin

    (Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Abstract

We provide a new approach to the structural analysis of the standard lost-sales inventory system. This approach is, we think, easier to work with than the original one. We also derive new bounds on the optimal policy. Then, we show that more variable demand leads to higher cost. Finally, we extend the analysis to several important variations of the basic model.

Suggested Citation

  • Paul Zipkin, 2008. "On the Structure of Lost-Sales Inventory Models," Operations Research, INFORMS, vol. 56(4), pages 937-944, August.
    • Handle: RePEc:inm:oropre:v:56:y:2008:i:4:p:937-944
    DOI: 10.1287/opre.1070.0482
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    References listed on IDEAS

    as
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