Naval Research Logistics Quarterly · 1955 · 23 citations · 0 references
ManagementIndustrial EngineeringOperations ManagementInventory ControlInventory ManagementOperations PlanningInventory Control PoliciesInventory Management SystemsInventory OptimizationInventory SystemsInventory TheoryLot SizingInventory Control ModelsInventory Control OptimizationInventory EconomicsInventory Level OptimizationInventory PlanningLot Size AnalysisLot Sizing PolicyOptimal Inventory Levels
Abstract The following note is concerned with establishing an inventory control policy for items with extremely low demand. In the event that the expected savings in ordering cost that would result from buying in lots is less than the concomitant increase in carrying charges, it is uneconomical to use a lot size formula. In this event, it is appropriate to use a system consisting of placing orders as units are demanded.