INVENTORY SERVICE-LEVEL MEASURES: CONVEXITY AND APPROXIMATION.

Journal Article

We argue that standard approximations for two often-used inventory service-level measures may perform poorly in many situations. Then we confirm the long-standing conjecture that the (relatively) exact formulas for these quantities are convex functions of the relevant control variables. Both results suggest the exact expressions should be seriously considered in practical work.

Duke Authors

Cited Authors

  • Zipkin, P

Published Date

  • 1986

Published In

  • Management Science

Volume / Issue

  • 32 / 8

Start / End Page

  • 975 - 981