Article ID: | iaor200747 |
Country: | Netherlands |
Volume: | 143 |
Issue: | 1 |
Start Page Number: | 45 |
End Page Number: | 58 |
Publication Date: | Mar 2006 |
Journal: | Annals of Operations Research |
Authors: | Arcelus F.J., Srinivasan G., Pakkala T.P.M. |
This paper models a retailer's response to temporary manufacturer's trade deals characterized by a time interval of random length and of uncertain duration. Uncertainty is handled primarily through the establishment of a reordering point, which serves as a trigger mechanism for new special orders. The timing at which this point is activated becomes another decision variable to be determined optimally. The model generates relatively easy-to-implement ordering policies, applicable to any probability distribution.