Concepts,Theory, and Techniques THE LOT-SIZE REORDER-POINT MODEL WITH UPSTREAM-DOWNSTREAM UNCERTAINTY* |
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Authors: | A Hamid Noori Gerald Keller |
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Abstract: | One assumption in the classical lot-size problem is certainty in the amount requisitioned. In many practical situations, however, the amount received may be a random variable. In this paper, we discuss a lot-size inventory problem in which the quantity received does not necessarily match the quantity requisitioned. We develop explicit and approximate solutions for the back-orders case by assuming that the standard deviation of the amount received is linearly related to the quantity requisitioned. |
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Keywords: | Inventory Management and Production/Operations Management |
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