Ethics Under Uncertainty: The Morality and Appropriateness of Utilitarianism When Outcomes Are Uncertain

The determination of optimal base-stock

The determination of optimal base-stock inventory policy when the costs of under- and oversupply are uncertain

✍ Timothy J. Lowe; Leroy B. Schwarz; Edward J. McGavin 📂 Article 📅 1988 🏛 John Wiley and Sons 🌐 English ⚖ 758 KB

This article considers the determination of the optimal base-stock inventory policy for the newsboy inventory model when there is uncertainty about either or both of its basic cost inputs: either C,, the marginal cost of an undersupply mistake, or C,, the marginal cost of an oversupply mistake. Such