Asymptotic Optimality of Order-Up-To Policies in Lost Sales Inventory Systems

Electronic Companion — “ Asymptotic Optimality of Order - Up - To Policies in Lost Sales Inventory Systems ” by Woonghee

Asymptotic Optimality of Order-Up-To Replenishment Policies for Serial Inventory Systems with Lost Sales

We study the optimal policy for a serial inventory system under periodic review when excess demand at the retailer (i.e., the most downstream stage) is lost. We focus on “high service level environments” (i.e., systems where the cost of a lost sale is high compared to inventory holding costs). These environments are typical of products whose margins are high relative to their holding costs. Whe...

Robustness of Order-Up-to Policies in Lost-Sales Inventory Systems

"Robustness of order-up-to policies in lost-sales inventory systems. Full terms and conditions of use:

Estimation of the cost function of a two-echelon inventory system with lost sales using regression

Multi-echelon inventory systems are one of the most important and attractive areas in modelling supply chain management so that several researches and studies have been done about. In this paper, the total cost function of a two-echelon inventory system with central warehouse and many identical retailers controlled by continuous review inventory policy is estimated. We have assumed the demand i...

Optimal Policies for Inventory Systems with Concave Ordering Costs

In this paper we characterize the structure of optimal policies for periodic review inventory systems with concave ordering costs. By extending the Scarf (1958) model to systems with piecewise linear concave ordering costs, we show the optimality of generalized (s, S) policies for general demand distributions. We do so by (a) introducing a conditional monotonicity property for the order-up-to l...