Optimal Inventory Models for Retail Stock under Alternative Decision Rules Regarding Resupply.
Abstract
In an earlier paper, a model was formulated for computing the optimal retail stock level of an item when resupply from a wholesaler is possible but uncertain. This model assumed an infinite amount of stock is available for shipment to the retailer and that the wholesaler incurs no cost for holding stock. In the two models discussed in this paper, these assumptions are dropped. Based on calculations to assess the sensitivity of the models, it appears that for most items a push type inventory system in more economical than one using the discretionary control of shipping shortfall units only if they will arrive on time at the retail level. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 02, 1981
- Accession Number
- ADA110548
Entities
People
- Rosedith Sitgreaves
- Sheldon E. Haber
Organizations
- George Washington University