Optimal inventory policy¶
Arrow, K. J. (1951). Optimal inventory policy. Econometrica, 19(3), 250-272.
Cited by¶
1 citation across 1 artifact.
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Primes¶
- Buffering
- The buffer costs warehousing, capital, and risk of obsolescence; the trade-off is quantified by holding cost vs. stockout cost, guiding optimal buffer size via the newsvendor model formalized by Arrow, Harris, and Marschak (1951).
This sourceFoundational inventory-theory paper: formalizes the newsvendor and (s, S) inventory models in which the optimal safety-stock buffer balances expected holding cost against expected shortage cost under stochastic demand.
- The buffer costs warehousing, capital, and risk of obsolescence; the trade-off is quantified by holding cost vs. stockout cost, guiding optimal buffer size via the newsvendor model formalized by Arrow, Harris, and Marschak (1951).
Verification¶
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Registry ID ref:29433648f9ef · see in the full table