| Article ID: | iaor20052939 |
| Country: | Netherlands |
| Volume: | 95 |
| Issue: | 3 |
| Start Page Number: | 287 |
| End Page Number: | 295 |
| Publication Date: | Jan 2005 |
| Journal: | International Journal of Production Economics |
| Authors: | Urban T.L. |
It has been established that the demand rates of many consumer products are serially correlated and are dependent on the amount of inventory displayed to the customer. A periodic-review model is developed that considers both of these effects. An adaptive, base-stock policy based on the critical fractile is presented, and a solution methodology is developed. The effect of this demand pattern on the safety stock requirement is investigated.