| Article ID: | iaor20051652 |
| Country: | Netherlands |
| Volume: | 93/94 |
| Issue: | 1 |
| Start Page Number: | 111 |
| End Page Number: | 119 |
| Publication Date: | Jan 2005 |
| Journal: | International Journal of Production Economics |
| Authors: | Scarf H.E. |
Inventory models customarily assume that demand is fully satisfied if sufficient stock is available. We analyze the form of optimal inventory policy if the inventory manager can choose to meet a fraction of the demand. Under classical conditions we show that the optimal policy is again of the (