Journal
OPERATIONS RESEARCH
Volume 56, Issue 4, Pages 937-944Publisher
INFORMS
DOI: 10.1287/opre.1070.0482
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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.
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