Some firms make all their products to order while others make them to stock. There are a number of firms that maintain a middle ground, where some items are made to stock and others are made to order. This paper was motivated by a consumer product company faced with the decision about which...

In this paper, we consider a periodic review inventory problem where demand in each period is modeled by linear regression. We use a Bayesian formulation to update the regression parameters as new information becomes available. We find that a state-dependent base-stock policy is optimal and we...