A practical inventory control policy using operational statistics

✍ Scribed by Liwan H. Liyanage; J.George Shanthikumar

• Book ID: 104076281
• Publisher: Elsevier Science
• Year: 2005
• Tongue: English
• Weight: 186 KB
• Volume: 33
• Category: Article
• ISSN: 0167-6377
• DOI: 10.1016/j.orl.2004.08.003

✦ Synopsis

Consider the newsvendor inventory control problem with an ambiguous demand. The traditional approach of separating the parameter estimation and the maximization of the expected profit leads to a suboptimal inventory policy. Operational statistics, introduced in this paper, provides a better solution by integrating the estimation and the optimization tasks.