| Article ID: | iaor200942185 |
| Country: | United States |
| Volume: | 56 |
| Issue: | 4 |
| Start Page Number: | 937 |
| End Page Number: | 944 |
| Publication Date: | Jul 2008 |
| Journal: | Operations Research |
| Authors: | Zipkin Paul |
We provide a new approach to the structural analysis of the standard lost–sales inventory system. This approach is, we think, easier to work with than the original one. We also derive new bounds on the optimal policy. Then, we show that more variable demand leads to higher cost. Finally, we extend the analysis to several important variations of the basic model.