Article ID: | iaor200565 |
Country: | United States |
Volume: | 51 |
Issue: | 1 |
Start Page Number: | 117 |
End Page Number: | 136 |
Publication Date: | Feb 2004 |
Journal: | Naval Research Logistics |
Authors: | Romeijn H. Edwin, Geunes Joseph, Shen Zuo-Jun |
Keywords: | programming: integer |
Standard approaches to classical inventory control problems treat satisfying a predefined demand level as a constraint. In many practical contexts, however, total demand is comprised of separate demands from different markets or customers. It is not always clear that constraining a producer to satisfy all markets is an optimal approach. Since the inventory-related cost of an item depends on total demand volume, no clear method exists for determining a market's profitability