Nagarajan, Mahesh; Rajagopalan, S. - In: Management Science 54 (2008) 8, pp. 1453-1466
In this paper, we examine the nature of optimal inventory policies in a system where a retailer manages substitutable products. We first consider a system with two products 1 and 2 whose total demand is D and individual demands are negatively correlated. A fixed proportion of the unsatisfied...