A Generalization of the Inventory Pooling Effect to Nonnormal Dependent Demand

Published Online:https://doi.org/10.1287/msom.1060.0117

References

  • Alfaro J. A., Corbett Charles J. The value of SKU rationalization in practice (The pooling effect under suboptimal inventory policies). Production Oper. Management (2003) 12(1):12–29CrossrefGoogle Scholar
  • Clemen R. T., Reilly T. Correlations and copulas for decision and risk analysis. Management Sci. (1999) 45(2):208–224LinkGoogle Scholar
  • Corbett C. J., Rajaram K. Aggregation of uncertainty and multivariate dependence: The value of pooling of inventories under non-normal dependent demand. (2004) . Working paper, UCLA Anderson School of Management, Los Angeles, CAGoogle Scholar
  • Dong L., Rudi N. Who benefits from transshipment? Exogenous vs. endogenous wholesale prices. Management Sci. (2004) 50(5):645–657LinkGoogle Scholar
  • Eppen G. Effects of centralization on expected costs in a multi-location newsboy problem. Management Sci. (1979) 25(5):498–501LinkGoogle Scholar
  • Eppen G., Schrage L., Schwarz L. B. Centralized ordering policies in a multi-warehouse system with leadtimes and random demand. Multi-Level Production/Inventory Systems: Theory and Practice (1981) (North-Holland, New York) 51–67Google Scholar
  • Erkip N., Hausman W. H., Nahmias S. Optimal centralized ordering policies in multi-echelon inventory systems with correlated demands. Management Sci. (1990) 36(3):381–392LinkGoogle Scholar
  • Federgruen A., Zipkin P. Approximations of dynamic, multilocation production and inventory problems. Management Sci. (1984) 30(1):69–84LinkGoogle Scholar
  • Garg A., Lee H. L., Tayur S., Ganeshan R., Magazine M. Managing product variety: An operations perspective. Quantitative Models for Supply Chain Management (1999) (Kluwer Academic Publishers)467–490CrossrefGoogle Scholar
  • Gerchak Y., Mossman D. On the effect of demand randomness on inventories and costs. Oper. Res. (1992) 40(4):804–807LinkGoogle Scholar
  • Groenevelt H., Rudi N. Product design for component commonality and the effect of demand correlation. (2000) . Working paper, University of Rochester, Rochester, NYGoogle Scholar
  • Ho T. H., Tang C. S.Product Variety Management—Research Advances (1998) (Kluwer Academic Publishers)CrossrefGoogle Scholar
  • Joe H.Multivariate Models and Dependence Concepts (1997) (Chapman & Hall, London) CrossrefGoogle Scholar
  • Jönsson H., Silver E. A. Analysis of a two-echelon inventory control system with complete redistribution. Management Sci. (1987) 33(2):215–227LinkGoogle Scholar
  • Müller A., Scarsini M. Some remarks on the supermodular order. J. Multivariate Analysis (2000) 73:107–119CrossrefGoogle Scholar
  • Müller A., Scarsini M. Stochastic comparison of random vectors with a common copula. Math. Oper. Res. (2001) 26:723–740LinkGoogle Scholar
  • Müller A., Stoyan D.Comparison Methods for Stochastic Models and Risks (2002) (John Wiley & Sons, New York) Google Scholar
  • Nelsen Roger B.An Introduction to Copulas (1999) (Springer, New York) CrossrefGoogle Scholar
  • Netessine S., Dobson G., Shumsky R. A. Flexible service capacity: Optimal investment and the effect of demand correlation. Oper. Res. (2002) 50(2):375–388LinkGoogle Scholar
  • Rudi N. Optimal inventory levels in systems with common components. (2000) . Working paper, University of Rochester, Rochester, NYGoogle Scholar
  • Scarsini M. Multivariate convex orderings, dependence, and stochastic equality. J. Appl. Probab. (1998) 35:93–103CrossrefGoogle Scholar
  • Scarsini M., Shaked M., Heyde C. C., Pohorov Y. V., Pyke R., Rachev S. T. Positive dependence orders: A survey. Applied Probability. Vol. 1 of Athens Conference on Applied Probability and Time Series Analysis (1996) (Springer Verlag, Berlin, Germany) 70–91CrossrefGoogle Scholar
  • Shaked M., Shanthikumar J. G.Stochastic Orders and Their Applications (1994) (Academic Press Inc., Boston, MA) Google Scholar
  • Van Mieghem J. A., Rudi N. Newsvendor networks: Dynamic inventory management and capacity investment with discretionary pooling. Manufacturing Service Oper. Management (2002) 4(4):313–335LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.