IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v25y1979i8p709-720.html
   My bibliography  Save this article

Using Optimal Policy Surfaces to Analyze Aggregate Inventory Tradeoffs

Author

Listed:
  • Everette S. Gardner, Jr.

    (University of North Carolina at Chapel Hill)

  • David G. Dannenbring

    (Columbia University)

Abstract

The marginal cost information needed to implement traditional inventory models is not likely to be available in practice. The most important inventory management issues in practive involve aggregate objectives and constraints while the richest theoretical models deal with single item management. To help resolve these problems, the authors propose that inventory decisions be conceived as policy tradeoffs on a three dimensional response surface showing the optimal relationships among aggregate customer service, workload, and investment. We show that any optimal management decision must result in a point located on the surface. Computational results show that the methodology suggested can make improvements in management policy in four inventories that total more than 78,000 line items.

Suggested Citation

  • Everette S. Gardner, Jr. & David G. Dannenbring, 1979. "Using Optimal Policy Surfaces to Analyze Aggregate Inventory Tradeoffs," Management Science, INFORMS, vol. 25(8), pages 709-720, August.
    • Handle: RePEc:inm:ormnsc:v:25:y:1979:i:8:p:709-720
    DOI: 10.1287/mnsc.25.8.709
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.25.8.709
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.25.8.709?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
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A A Syntetos & J E Boylan & S M Disney, 2009. "Forecasting for inventory planning: a 50-year review," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(1), pages 149-160, May.
    2. Gardner, Everette Jr. & Diaz-Saiz, Joaquin, 2002. "Seasonal adjustment of inventory demand series: a case study," International Journal of Forecasting, Elsevier, vol. 18(1), pages 117-123.
    3. Tsou, Ching-Shih, 2009. "Evolutionary Pareto optimizers for continuous review stochastic inventory systems," European Journal of Operational Research, Elsevier, vol. 195(2), pages 364-371, June.
    4. Relph, Geoff & Barrar, Peter, 2003. "Overage inventory--how does it occur and why is it important?," International Journal of Production Economics, Elsevier, vol. 81(1), pages 163-171, January.
    5. van Donselaar, Karel & Broekmeulen, Rob & de Kok, Ton, 2021. "Heuristics for setting reorder levels in periodic review inventory systems with an aggregate service constraint," International Journal of Production Economics, Elsevier, vol. 237(C).
    6. Lenard, J. D. & Roy, B., 1995. "Multi-item inventory control: A multicriteria view," European Journal of Operational Research, Elsevier, vol. 87(3), pages 685-692, December.
    7. De Schrijver, Steven K. & Aghezzaf, El-Houssaine & Vanmaele, Hendrik, 2013. "Aggregate constrained inventory systems with independent multi-product demand: Control practices and theoretical limitations," International Journal of Production Economics, Elsevier, vol. 143(2), pages 416-423.
    8. Liberopoulos, George & Tsikis, Isidoros & Delikouras, Stefanos, 2010. "Backorder penalty cost coefficient "b": What could it be?," International Journal of Production Economics, Elsevier, vol. 123(1), pages 166-178, January.

    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:25:y:1979:i:8:p:709-720. 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.