Analysis of the deterministic (s, S) inventory problem
Article Abstract:
The classical and the direct approaches for selecting inventory control parameters are compared. The classical, also called traditional or textbook, approach for choosing an (s,S) inventory policy involves developing a distribution model summarizing a given data set, aligning the model to the data, and choosing from a given set of policies one policy that can lessen projected expenses in relation to the proposed distrubution model. The direct approach involves choosing from a given set of policies one that reduces expenses as they relate to the given data set. Apart from the comparison between the two approaches, a polynomial time algorithm for the resolution of the deterministic (s,S) inventory problem is also offered.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
The role of inventory in delivery-time competition
Article Abstract:
A model that illustrates the role of inventory in delivery-time competition is presented. Decision making functions relating to policies of production and inventory are influenced by three factors: customer behavior, competition and discounting. Optimal production/inventory policies are examined in the context of different market environments, namely the oligopoly, monopoly annd demand sharing markets. The change of markets from the oligopolic to the demand-sharing type results in a decrease of make-to-stock incentives. The relative time valuations of buyers and producers exert a strong influence on the framework for welfare transfer. Doubling orders enhances buyers' surplus and reduces producers' surplus.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: An analysis of optimal advertising under uncertainty. A new measure of attributable risk for public health applications
- Abstracts: A note on multi-regional marketing. The multi-item setup-reduction investment-allocation problem with continuous investment-cost functions
- Abstracts: The effects of cross-ruff coupons on sales and profits. The role of earnings information in corporate dividend decisions
- Abstracts: Deficiencies and the perpetuation of power: latent functions in management appraisal. The strategic contingencies theory of power: multiple perspectives
- Abstracts: Foreign direct investment in China: a consideration of some strategic options. Marketing in China