Spreadsheet Modeling of (Q,R) Inventory Policies
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.
Cobb, Barry R. "Spreadsheet Modeling of () Inventory Policies." Decision Sciences Journal of Innovative Education 11, no. 2 (2013): 175-184.
Decision Sciences Journal of Innovative Education