Olsen, Tava Lennon; Parker, Rodney P. - In: Management Science 54 (2008) 10, pp. 1805-1821
We investigate the situation where a customer experiencing an inventory stockout at a retailer potentially leaves the firm's market. In classical inventory theory, a unit stockout penalty cost has been used as a surrogate to mimic the economic effect of such a departure; in this study, we...