Foundations of Stochastic Inventory Theory¶
Porteus, E. L. (2002). Foundations of Stochastic Inventory Theory. Stanford University Press.
Cited by¶
1 citation across 1 artifact.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Comparative Statics
- The parameterized resting state is the optimal base-stock level $s^$, defined by the newsvendor balance condition that equates the marginal cost of holding one more unit against the marginal cost of a stockout: $P(\text{demand} \le s^) = \frac{c_u}{c_u + c_o}$, where $c_u$ is underage cost and $c_o$ overage cost.
This sourceDerives the newsvendor critical-fractile solution equating underage and overage costs, the base-stock optimality condition. (
- The parameterized resting state is the optimal base-stock level $s^$, defined by the newsvendor balance condition that equates the marginal cost of holding one more unit against the marginal cost of a stockout: $P(\text{demand} \le s^) = \frac{c_u}{c_u + c_o}$, where $c_u$ is underage cost and $c_o$ overage cost.
Verification¶
This reference passed the adversarial substantiation pipeline: it was checked to exist and to support the claim it is attached to. See how references were verified.
Registry ID ref:a1614ddc17f3 · see in the full table