Inventory management under highly uncertain demand

Guillermo Gallego; Kaan Katircioglu; Bala Ramachandran

doi:10.1016/j.orl.2006.03.012

Inventory management under highly uncertain demand

Guillermo Gallego^*
, Kaan Katircioglu
, Bala Ramachandran

^*Corresponding author for this work

Research output: Contribution to journal › Journal Article › peer-review

44 Citations (Scopus)

Abstract

We show that base-stock levels first increase and then decrease as the standard deviation increases for a variety of non-negative random variables with a given mean and provide a distribution-free upper bound for optimal base-stock levels that grows linearly with the standard deviation and then remains constant.

Original language	English
Pages (from-to)	281-289
Number of pages	9
Journal	Operations Research Letters
Volume	35
Issue number	3
DOIs	https://doi.org/10.1016/j.orl.2006.03.012
Publication status	Published - May 2007
Externally published	Yes

Keywords

Base-stock policy
Inventory management
Risk management

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10.1016/j.orl.2006.03.012

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title = "Inventory management under highly uncertain demand",

abstract = "We show that base-stock levels first increase and then decrease as the standard deviation increases for a variety of non-negative random variables with a given mean and provide a distribution-free upper bound for optimal base-stock levels that grows linearly with the standard deviation and then remains constant.",

keywords = "Base-stock policy, Inventory management, Risk management",

author = "Guillermo Gallego and Kaan Katircioglu and Bala Ramachandran",

year = "2007",

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doi = "10.1016/j.orl.2006.03.012",

language = "English",

volume = "35",

pages = "281--289",

journal = "Operations Research Letters",

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T1 - Inventory management under highly uncertain demand

AU - Gallego, Guillermo

AU - Katircioglu, Kaan

AU - Ramachandran, Bala

PY - 2007/5

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N2 - We show that base-stock levels first increase and then decrease as the standard deviation increases for a variety of non-negative random variables with a given mean and provide a distribution-free upper bound for optimal base-stock levels that grows linearly with the standard deviation and then remains constant.

AB - We show that base-stock levels first increase and then decrease as the standard deviation increases for a variety of non-negative random variables with a given mean and provide a distribution-free upper bound for optimal base-stock levels that grows linearly with the standard deviation and then remains constant.

KW - Base-stock policy

KW - Inventory management

KW - Risk management

UR - https://www.webofscience.com/wos/woscc/full-record/WOS:000246541400001

UR - https://openalex.org/W2046139886

U2 - 10.1016/j.orl.2006.03.012

DO - 10.1016/j.orl.2006.03.012

M3 - Journal Article

SN - 0167-6377

VL - 35

SP - 281

EP - 289

JO - Operations Research Letters

JF - Operations Research Letters

IS - 3

ER -

Inventory management under highly uncertain demand

Abstract

Keywords

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