Equivalence between the inventory-optimal oddment allocation and the backorder-optimal one

This paper introduces oddment tactic, presents the optimal oddment allocation method for minus oddment operation and the one for plus oddment operation when inventory transfer among retailers is permitted or not, proves the equivalence between backorder-optimal oddment allocation and inventory-optimal one, and discusses the application method of oddment tactic. It is shown in the numerical study that the application of oddment tactic can reduce cost.