Resource title

All-or-nothing ordering under a capacity constraint (RV of 2001/99/TM/CIMSO 25)

Resource image

image for OpenScout resource :: All-or-nothing ordering under a capacity constraint (RV of 2001/99/TM/CIMSO 25)

Resource description

The authors consider a special case of the single-item, periodic-review inventory control problem with fixed plus linear ordering cost and an upper bound on production capacity. They assume that the fixed cost is large relative to the variable cost and restrict their analysis to the of full-capacity orders. They show that the optimal policy is a threshold policy, with respect to the inventory position, for a class of cost-to-go functions that include the class of convex functions.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2003/2003-91.pdf

Resource license

Copyright INSEAD. All rights reserved