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- W2039672130 abstract "We show simple yet optimal results to update the inventory/capacity levels, expected profit, fill rates, and service levels of substitutable resources, in response to an updating of the mean demand forecasts for the resources. We find that a change in the mean demand of one resource does not affect the optimal inventory level of any other resource. The results are obtained for demands with location-scale distributions, and for a revenue structure satisfying a triangle property such that the manager will always use the inventory of a resource to meet its own demand first before using it for substitution. The results for updating the performance measures also extend to managers who maintain non-optimal inventory/capacity levels. Implications for procurement, sales and operational planning, and multi-store operations are discussed." @default.
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- W2039672130 date "2013-01-01" @default.
- W2039672130 modified "2023-09-23" @default.
- W2039672130 title "Updating Inventories of Substitutable Resources in Response to Forecast-Updates" @default.
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- W2039672130 doi "https://doi.org/10.2139/ssrn.2282711" @default.
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