Title

Spreadsheet Modeling of (Q,R) Inventory Policies

Abstract

This teaching brief describes a method for finding an approximately optimal combination of order quantity and reorder point in a continuous review inventory model using a discrete expected shortage calculation. The technique is an alternative to a model where expected shortage is calculated by integration, and can allow students who have not had a calculus‐based statistics course to better understand how uncertainty affects inventory decisions.

Department(s)

Marketing

Document Type

Article

DOI

https://doi.org/10.1111/dsji.12001

Publication Date

2013

Journal Title

Decision Sciences Journal of Innovative Education

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