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.

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Year of publication:	2007-11-17
Authors:	Martinez de Albeniz, Victor ; Lago, Alejandro
Institutions:	IESE Business School, Universidad de Navarra
Subject:	inventory management \| base-stock policies \| myopic policies

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Extent:	application/pdf
Series:	IESE Research Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IESE Research Papers Number D/719 15 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005106623