IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v21y1975i11p1303-1307.html
   My bibliography  Save this article

Optimality of Myopic Inventory Policies for Certain Dependent Demand Processes

Author

Listed:
  • G. D. Johnson

    (California State University, Northridge)

  • H. E. Thompson

    (University of Wisconsin, Madison)

Abstract

This paper shows that the optimal policy for single-product periodic ordering systems with proportional holding and stockout costs and zero lead time is myopic for both stationary and nonstationary demand processes as described by Box and Jenkins. The proof of optimality is based on a theorem by Veinott showing that the myopic policy is optimal in each period if the beginning inventory for that period is less than the critical number which is the optimal policy for that period considered in isolation.

Suggested Citation

  • G. D. Johnson & H. E. Thompson, 1975. "Optimality of Myopic Inventory Policies for Certain Dependent Demand Processes," Management Science, INFORMS, vol. 21(11), pages 1303-1307, July.
    • Handle: RePEc:inm:ormnsc:v:21:y:1975:i:11:p:1303-1307
    DOI: 10.1287/mnsc.21.11.1303
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.21.11.1303
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.21.11.1303?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:21:y:1975:i:11:p:1303-1307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.