| Article ID: | iaor2005854 |
| Country: | Netherlands |
| Volume: | 32 |
| Issue: | 4 |
| Start Page Number: | 374 |
| End Page Number: | 379 |
| Publication Date: | Jul 2004 |
| Journal: | Operations Research Letters |
| Authors: | Gavirneni Srinagesh |
| Keywords: | heuristics |
For an inventory control problem in which the purchasing cost changes (e.g. exchange rate fluctuations), we show that an order up to policy is optimal and determine conditions under which the optimal up to levels are monotonically ordered. We also propose a simple method for predicting the effectiveness of myopic heuristics.