Dekker, Rudolf; Frenk, Johannes G.; Kleijn, Marcel J.; … - 1997
In this paper we analyse the effect of a cutoff transaction size in a simple newsboy setting. It is assumed that … compound Poisson demand with discrete order sizes, we show how to determine the average cost and an optimal cutoff transaction … expression for the average cost function that depends on the cutoff transaction size only. A main advantage of this approximation …