| Article ID: | iaor1991431 |
| Country: | Netherlands |
| Volume: | 9 |
| Issue: | 4 |
| Start Page Number: | 215 |
| End Page Number: | 217 |
| Publication Date: | Jul 1990 |
| Journal: | Operations Research Letters |
| Authors: | Gerchak Yigal |
Analytical comparative statics for multivariate models with no closed-form solutions are rarely available. The paper performs such analysis for the continuous review inventory model. In particular, it derives the direction of change in the order point (safety stock) as shortage penalty, expected demand and holding costs are perturbed. The paper does so for both backlog and lost-sales models.