Analysis of perishable-inventory systems with censored demand data
Publication
, Journal Article
Lu, X; Song, JS; Zhu, K
Published in: Operations Research
July 1, 2008
We consider a multiperiod inventory system of a perishable product with unobservable lost sales. Demand distribution parameters are unknown and are updated periodically using the Bayesian approach based on the censored historical sales data. We develop an explicit expression of the first-order condition for optimality that demonstrates the key trade-off of the problem. The result generalizes partial characterizations of this trade-off in the literature. It shows that the myopic solution is a lower bound on the optimal inventory level. It also enables us to quantify the expected marginal value of information. © 2008 INFORMS.
Duke Scholars
Published In
Operations Research
DOI
EISSN
1526-5463
ISSN
0030-364X
Publication Date
July 1, 2008
Volume
56
Issue
4
Start / End Page
1034 / 1038
Related Subject Headings
- Operations Research
- 3507 Strategy, management and organisational behaviour
- 1503 Business and Management
- 0802 Computation Theory and Mathematics
- 0102 Applied Mathematics
Citation
APA
Chicago
ICMJE
MLA
NLM
Lu, X., Song, J. S., & Zhu, K. (2008). Analysis of perishable-inventory systems with censored demand data. Operations Research, 56(4), 1034–1038. https://doi.org/10.1287/opre.1080.0553
Lu, X., J. S. Song, and K. Zhu. “Analysis of perishable-inventory systems with censored demand data.” Operations Research 56, no. 4 (July 1, 2008): 1034–38. https://doi.org/10.1287/opre.1080.0553.
Lu X, Song JS, Zhu K. Analysis of perishable-inventory systems with censored demand data. Operations Research. 2008 Jul 1;56(4):1034–8.
Lu, X., et al. “Analysis of perishable-inventory systems with censored demand data.” Operations Research, vol. 56, no. 4, July 2008, pp. 1034–38. Scopus, doi:10.1287/opre.1080.0553.
Lu X, Song JS, Zhu K. Analysis of perishable-inventory systems with censored demand data. Operations Research. 2008 Jul 1;56(4):1034–1038.
Published In
Operations Research
DOI
EISSN
1526-5463
ISSN
0030-364X
Publication Date
July 1, 2008
Volume
56
Issue
4
Start / End Page
1034 / 1038
Related Subject Headings
- Operations Research
- 3507 Strategy, management and organisational behaviour
- 1503 Business and Management
- 0802 Computation Theory and Mathematics
- 0102 Applied Mathematics