In this paper we analyse the effect of a cutoff transaction size in a simple newsboy setting. It is assumed that customers with an order larger than a prespecified size are satisfied in an alternative way, against additional cost. For compound Poisson demand with discrete order sizes, we show...

In most multi-item inventory systems, the ordering costs consist of a major cost and a minor cost for each item included. Applying for every individual item a cyclic inventory policy, where the cycle length is a multiple of some basic cycle time, reduces the major ordering costs. An efficient...