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OPTIMAL INVENTORY STOCKING LEVELS WITH DEMAND TRANSFERENCE AMONG PRODUCTS
Author(s) -
Matthews John P.
Publication year - 1978
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1978.tb01372.x
Subject(s) - stocking , vendor , business , product (mathematics) , stock (firearms) , lawn , operations management , microeconomics , agricultural science , marketing , economics , mathematics , environmental science , ecology , engineering , mechanical engineering , geometry , fishery , biology
When a product is temporarily unavailable it is not uncommon to find consumers buying a related product rather than postponing the purchase until the former is back in stock. This phenomenon may be observed in the sale of cigarettes, candy bars, different‐sized packages of milk, lawn fertilizer, brands of wine and a host of other consumer items. This paper suggests a model for the vendor to employ when seeking to opti mize his stocking strategy for a periodic review/replenishment system.