This paper is concerned with a periodic review inventory system with fast and slow delivery modes, fixed ordering cost, and regular demand forecast updates. At the beginning of each period, on-hand inventory and demand information are updated. At the same time, decisions on how much to order...

The paper proposes an approach to the two period inventory problem for items that have heterogeneous Poisson demands. A model is constructed whose appealing features reveals aspects of the nature of the optimal stocking problem that enable the manager to assess the degree to which demand is...