A comparison of the optimal costs of two canonical inventory systems
成果类型：
Article
署名作者：
Janakiraman, Ganesh; Seshadri, Sridhar
署名单位：
New York University; University of California System; University of California Berkeley
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.1070.0463
发表日期：
2007
页码：
866-875
关键词：
摘要：
We compare two inventory systems, one in which excess demand is lost and the other in which excess demand is back-ordered. Both systems are reviewed periodically. They experience the same sequence of identically and independently distributed random demands. Holding and shortage costs are considered. The holding cost parameter is identical; however, the cost of a lost sale could be different from the per-period cost of backlogging a unit sale. When these costs are equal, we prove that the optimal expected cost for managing the system with lost sales is lower. When the cost of a lost sale is greater, we establish a relationship between these parameters that ensures that the reverse inequality is true. These results are useful for designing inventory systems. We also introduce a new stochastic comparison technique in this paper.