Purpose The purpose of this paper is to investigate the impact of backroom storage in supply chain replenishment decision parameters: the order quantity based on the well-established economic order quantity (EOQ) model. Design/methodology/approach The authors develop an EOQ-type model to...

Purpose The purpose of this paper is to investigate the impact of bias error resulted from using Monte Carlo simulation in evaluating the American-style option value. Design/methodology/approach The authors develop an analytical approximation formula to quantify the bias error under the...