| Article ID: | iaor20022669 |
| Country: | Netherlands |
| Volume: | 29 |
| Issue: | 4 |
| Start Page Number: | 187 |
| End Page Number: | 192 |
| Publication Date: | Nov 2001 |
| Journal: | Operations Research Letters |
| Authors: | Gallego Guillermo, Boyaci Tamer |
| Keywords: | stochastic processes |
Minimizing average ordering and holding cost subject to a constraint on expected backorders has required to iteratively solve the backorder cost model with different backorder penalty rates until the constraint is satisfied. Here we present a direct approach, that is as simple as solving a single backorder cost model.