Optimal Inventory Policy¶
Arrow, K. J., Harris, T., & Marschak, J. (1951). Optimal Inventory Policy. Econometrica, 19(3), 250-272.
Cited by¶
2 citations across 2 artifacts.
Each citation links to the sentence it supports in the citing article.
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).
Mechanisms¶
- Lead-Time / Inventory Trade-off Curve
- The curve's strength is that it turns the inventory-versus-lead-time trade-off from an inherited habit into a visible, defensible choice; it is the operational cousin of the newsvendor trade-off
This sourceModels inventory choice as a balance between the costs of excess stock and the costs of shortage.
- The curve's strength is that it turns the inventory-versus-lead-time trade-off from an inherited habit into a visible, defensible choice; it is the operational cousin of the newsvendor trade-off
Verification¶
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Does it back the claim? Not recorded. Neither this nor any other of the 2 citations of this work carries a recorded support check.
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Links previously used in the corpus¶
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Registry ID ref:8931de9a1276 · see in the full table