Inventory Service-Level Measures: Convexity and Approximation

We argue that standard approximations for two often-used inventory service-level measures may perform poorly in many situations. Then we confirm the long-standing conjecture that the (relatively) exact formulas for these quantities are convex functions of the relevant control variables. Both results suggest the exact expressions should be seriously considered in practical work.

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Year of publication:	1986
Authors:	Zipkin, Paul
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 32.1986, 8, p. 975-981
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS
Subject:	inventory/production \| approximations \| stochastic models

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Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.32.8.975 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009191570