Analytical comparative statistics for the continuous review inventory model

Yigal Gerchak*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Analytical comparative statics for multivariate models with no closed-form solutions are rarely available. We perform such analysis for the continuous review inventory model. In particular, we derive the direction of change in the order point (safety stock) as shortage penalty, expected demand and holding costs are pertubed. We do so for both backlog and lost-sales models.

Original languageEnglish
Pages (from-to)215-217
Number of pages3
JournalOperations Research Letters
Volume9
Issue number4
DOIs
StatePublished - Jul 1990
Externally publishedYes

Keywords

  • inventory-production
  • ordering policies

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