Accession Number : AD0697266
Title : THE NEAR-MYOPIC NATURE OF THE LAGGED PROPORTIONAL COST INVENTORY PROBLEM WITH LOST SALES.
Descriptive Note : Research rept.,
Corporate Author : CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
Personal Author(s) : Morton, Thomas E.
Report Date : SEP 1969
Pagination or Media Count : 29
Abstract : A considerable literature has been devoted to periodic review inventory problems with proportional ordering costs and known independent demand distributions, due to the optimality under broad conditions of 'base stock' policies. An important exception is the case when order delivery is lagged and excess demand is simply lost, which is more complicated. By further restricting holding and penalty costs to be proportional, the author has extended preliminary work by others to obtain good bounds for both the optimal order policy and the associated minimum expected discounted cost function for the stationary problem. An extension of the model to a partial backlogging situation is presented for which optimal policies may be considered 'myopoid.' (Author)
Descriptors : (*INVENTORY CONTROL, MATHEMATICAL MODELS), MANAGEMENT PLANNING AND CONTROL, COSTS, STATISTICAL PROCESSES, MATHEMATICAL PREDICTION, DISTRIBUTION FUNCTIONS, ITERATIONS.
Subject Categories : Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE