Abstract
This paper models a retailer’s response to temporary manufacturer’s trade deals characterized by a time interval of random length and of uncertain duration. Uncertainty is handled primarily through the establishment of a reordering point, which serves as a trigger mechanism for new special orders. The timing at which this point is activated becomes another decision variable to be determined optimally. The model generates relatively easy-to-implement ordering policies, applicable to any probability distribution.
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Arcelus, F.J., Pakkala, T.P.M. & Srinivasan, G. On the interaction between retailers inventory policies and manufacturer trade deals in response to supply-uncertainty occurrences. Ann Oper Res 143, 45–58 (2006). https://doi.org/10.1007/s10479-006-7371-4
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DOI: https://doi.org/10.1007/s10479-006-7371-4