Optimal Inventory Depletion Policies

Published Online:https://doi.org/10.1287/mnsc.7.3.294

Consider a stockpile of items whose field life is a non-negative function of the age of the item upon being issued. Assume that only one item is in use at a time and that a demand occurs only when the item in use is completely exhausted.

Six theorems are given which extend the class of field life functions such that either LIFO or FIFO are optimal issue policies.

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