Myopic inventory policies using individual customer arrival information
We investigate optimality of myopic policies using the single-unit decomposition approach in inventory management. We derive, under certain conditions, closed-form replenishment decisions, which we call a base-probability policy. That is, the order associated with a given customer is placed if and only if its arrival probability within the lead-time is higher than a threshold.
|Date of creation:||17 Nov 2007|
|Date of revision:|
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- Andrew J. Clark & Herbert Scarf, 2004.
"Optimal Policies for a Multi-Echelon Inventory Problem,"
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