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Spreadsheet Modeling of ( Q , R ) Inventory Policies
Author(s) -
Cobb Barry R.
Publication year - 2013
Publication title -
decision sciences journal of innovative education
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.52
H-Index - 19
eISSN - 1540-4609
pISSN - 1540-4595
DOI - 10.1111/dsji.12001
Subject(s) - reorder point , economic shortage , computer science , economic order quantity , point (geometry) , order (exchange) , operations research , industrial engineering , management science , mathematics , supply chain , economics , business , marketing , engineering , linguistics , philosophy , geometry , finance , government (linguistics)
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.