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Variance vs. Standard Deviation: Variability Reduction Through Operations Reversal

Author

Listed:
  • Roman Kapuscinski

    (Business School, University of Michigan, Ann Arbor, Michigan 48109)

  • Sridhar Tayur

    (Graduate School of Industrial Engineering, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213-3890)

Abstract

We show that if the analysis of the model of Lee and Tang used standard deviation rather than variance, some nonintuitive predictions of their analysis would be eliminated.

Suggested Citation

  • Roman Kapuscinski & Sridhar Tayur, 1999. "Variance vs. Standard Deviation: Variability Reduction Through Operations Reversal," Management Science, INFORMS, vol. 45(5), pages 765-767, May.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:5:p:765-767
    DOI: 10.1287/mnsc.45.5.765
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    References listed on IDEAS

    as
    1. Guillermo Gallego, 1998. "New Bounds and Heuristics for (Q, r) Policies," Management Science, INFORMS, vol. 44(2), pages 219-233, February.
    2. Hau L. Lee & Christopher S. Tang, 1998. "Variability Reduction Through Operations Reversal," Management Science, INFORMS, vol. 44(2), pages 162-172, February.
    3. Richard Ehrhardt, 1979. "The Power Approximation for Computing (s, S) Inventory Policies," Management Science, INFORMS, vol. 25(8), pages 777-786, August.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Feng Dong & Qiguo Gong & Hui Wang & Siyuan Yi & Yue Cai, 2019. "Rest Breaks Arrange Based on Empirical Studies of Productivity in Manufacturing Industry," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(9), pages 1043-1066, September.
    2. Nikhil Jain & Anand Paul, 2001. "A Generalized Model of Operations Reversal for Fashion Goods," Management Science, INFORMS, vol. 47(4), pages 595-600, April.
    3. Brun, Alessandro & Capra, Eugenio & Miragliotta, Giovanni, 2009. "VRP revisited: The impact of behavioural costs in balancing standardisation and variety," International Journal of Production Economics, Elsevier, vol. 117(1), pages 16-29, January.
    4. Cheung, Ki Ling & Song, Jing-Sheng & Zhang, Yue, 2017. "Cost reduction through operations reversal," European Journal of Operational Research, Elsevier, vol. 259(1), pages 100-112.
    5. Tang, Christopher S., 2006. "Perspectives in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 103(2), pages 451-488, October.
    6. Jim (Junmin) Shi & Xiaohang Yue & Yao Zhao, 2014. "Operations sequencing for a multi‐stage production inventory system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 61(2), pages 144-154, March.
    7. Yossi Aviv & Awi Federgruen, 2001. "Capacitated Multi-Item Inventory Systems with Random and Seasonally Fluctuating Demands: Implications for Postponement Strategies," Management Science, INFORMS, vol. 47(4), pages 512-531, April.
    8. Alfaro, José A. & Corbett, Charles J., 2000. "The value of SKU rationalization: the pooling effect under suboptimal inventory policies," DEE - Working Papers. Business Economics. WB 9917, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.

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