Spreadsheet Modeling of () Inventory Policies |
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| Authors: | Barry R Cobb |
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| Institution: | Department of Economics and Business, Virginia Military Institute, , Lexington, VA, 24450 |
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| Abstract: | 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. |
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| Keywords: | Operations Management Spreadsheet Modeling Student Learning Supply Chain Management |
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