The author is grateful for valuable comments from two anonymous reviewers and the associate editor which substantially improved the teaching brief.
Spreadsheet Modeling of (Q,R) Inventory Policies†
Article first published online: 8 APR 2013
© 2013 The Author Decision Sciences © 2013 Decision Sciences Institute
Decision Sciences Journal of Innovative Education
Volume 11, Issue 2, pages 175–184, April 2013
How to Cite
Cobb, B. R. (2013), Spreadsheet Modeling of (Q,R) Inventory Policies. Decision Sciences Journal of Innovative Education, 11: 175–184. doi: 10.1111/dsji.12001
- Issue published online: 8 APR 2013
- Article first published online: 8 APR 2013
- Operations Management;
- Spreadsheet Modeling;
- Student Learning;
- Supply Chain Management
This teaching brief describes a method for finding an approximately optimal combination of order quantity and reorder point in a continuous review inventory model using a discrete expected shortage calculation. The technique is an alternative to a model where expected shortage is calculated by integration, and can allow students who have not had a calculus-based statistics course to better understand how uncertainty affects inventory decisions.