COMPUTING EXPECTED VALUES OF CUSTOMER REQUESTS BACKORDERED.

Abstract

The document considers the stockout cost for an inventory manager as a function of the number of customer requests backordered, each request possibly being for several units of stock. The problem arises of computing the expected stockout cost in terms of requests, when techniques are available for computing it in units. A simple conversion factor is desirable. Based on a formal analysis, the conversion factor 1/E(X) is recommended where E(X) is average size of a customer request. (Author)

Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1970
Accession Number
AD0701172

Entities

People

  • Alan J. Kaplan

Tags

DTIC Thesaurus Topics

  • Conversion

Fields of Study

  • Computer science
  • Mathematics

Readers

  • Logistics and Supply Chain Management.
  • Operations Research