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Retailer’s inventory policies for a one time only manufacturer trade deal of uncertain duration

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  • Francisco Arcelus
  • T. Pakkala
  • Gopalan Srinivasan

Abstract

This paper models a retailer’s response to temporary manufacturer’s trade deals characterized by a time interval of random length, but with the ending date known before its occurrence. Uncertainty is handled through a reordering point, which serves as a trigger mechanism for a new special order and is activated at the discount termination date. The model generates ordering policies, applicable to any probability distribution and is shown to yield well-known deterministic optimal policies as a limiting case. Copyright Springer Science+Business Media, LLC 2008

Suggested Citation

  • Francisco Arcelus & T. Pakkala & Gopalan Srinivasan, 2008. "Retailer’s inventory policies for a one time only manufacturer trade deal of uncertain duration," Annals of Operations Research, Springer, vol. 164(1), pages 3-15, November.
    • Handle: RePEc:spr:annopr:v:164:y:2008:i:1:p:3-15:10.1007/s10479-007-0256-3
    DOI: 10.1007/s10479-007-0256-3
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    References listed on IDEAS

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    4. Gullu, Refik & Onol, Ebru & Erkip, Nesim, 1999. "Analysis of an inventory system under supply uncertainty," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 377-385, March.
    5. Mahmut Parlar, 2000. "Probabilistic Analysis of Renewal Cycles: An Application to a Non-Markovian Inventory Problem with Multiple Objectives," Operations Research, INFORMS, vol. 48(2), pages 243-255, April.
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