This paper analyzes the stochastic inventory control problem when the demand distribution is not known. In contrast to previous Bayesian inventory models, this paper adopts a non-parametric Bayesian approach in which the firm’s prior information is characterized by a Dirichlet process prior....

The Law of Industrial Dynamics ensures that if a production control system can amplify then it will surely find a way of doing so despite the best efforts of production schedulers to take corrective action. In fact, practical studies show that such human intervention frequently aggravates the...

This article considers the effect of freight discounts and disposals on the inventory policies of a profit‐maximising firm with price‐elastic demand and with price as a mark‐up on the acquisition cost. In addition, the cost of placing an order is in part dependent upon a freight‐cost...

In this article, a PC‐based spreadsheet support system (SSS) for controlling inventory and service level for the newsboy problem is developed utilising Lotus 1‐2‐3 spreadsheet capabilities. The technical aspects of the SSS are presented and discussed within the context of a umerical...