| Article ID: | iaor20082146 |
| Country: | Netherlands |
| Volume: | 35 |
| Issue: | 3 |
| Start Page Number: | 281 |
| End Page Number: | 289 |
| Publication Date: | May 2007 |
| Journal: | Operations Research Letters |
| Authors: | Gallego Guillermo, Ramachandran Bala, Katircioglu Kaan |
| Keywords: | risk |
We show that base-stock levels first increase and then decrease as the standard deviation increases for a variety of non-negative random variables with a given mean and provide a distribution-free upper bound for optimal base-stock levels that grows linearly with the standard deviation and then remains constant.