Michael Ray, Yves C. Martin
Proceedings of SPIE - The International Society for Optical Engineering
Paper
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. © 2007.
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