Single-period inventory dependent demand models

Single-period inventory models concern an item whose demand occurs during a relatively short interval, after which the item becomes obsolete, spoils, or is no longer in demand. The essential characteristic of this type of model is that only one time period is relevant and there is only one opportunity for procuring the item. However, these single-period models assume that the demand is a random variable with a known probability distribution. They ignore the effect of other factors on demand. This paper is concerned with evaluating a single-period model in which the demand is a function of the inventory level (quantity on-hand).