An optimal ordering policy for situations with uncertainty in supply

Sujit K. Basu

Naval Research Logistics (NRL), 1987, vol. 34, issue 2, 151-159

Abstract: A one‐period inventory model where supply is a random variable with mean proportional to the quantity ordered has been considered. Under new better than used in expectation assumption on the supply variable, a strategy which maximizes a minimum profit has been suggested. An estimate for this maximin order quantity whenever the (customer) demand distribution is unknown has been proposed and almost sure convergence of this estimate to its true value with increasing sample size has been established.

Date: 1987
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Citations: View citations in EconPapers (3)

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https://doi.org/10.1002/1520-6750(198704)34:23.0.CO;2-G

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Persistent link: https://EconPapers.repec.org/RePEc:wly:navres:v:34:y:1987:i:2:p:151-159

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