Stocking of prescribed sizes of an item
Document Type
Article
Publication Date
1-1-1989
Abstract
In this paper we consider an item that is sold in a number of different prescribed sizes, an example being an item of clothing. We first deal with the situation where the total demand for a forthcoming period is known accurately but only historical or subjective estimates of the fractions of demand in each size are available. A procedure is developed for optimally allocating a given stock budget among the different sizes. Its performance is compared with a simpler, proportional allocation scheme. The numerical examples include data on clothing provided by a major municipal organization. The case where the total demand is a random variable is also treated. © 1989, Operational Research Society Ltd.
Publication Source (Journal or Book title)
Journal of the Operational Research Society
First Page
719
Last Page
727
Recommended Citation
Silver, E., & Kelle, P. (1989). Stocking of prescribed sizes of an item. Journal of the Operational Research Society, 40 (8), 719-727. https://doi.org/10.1057/jors.1989.123