Production and Operations Management 2015

Note on “The Backroom Effect in Retail Operations”

Zümbül Atan¹; Nesim Erkip²

¹ Eindhoven University of Technology · ² Bilkent University

Abstract

Eroglu et al. (2013) study a retailer with limited shelf capacity and a backroom. They study a continuous review ( r , q ) ordering policy with a known order quantity, q . Assuming that backorders can be satisfied from the backroom inventory (if available), they find the expression for the optimal reorder level, r . Our work builds on Eroglu et al. (2013). We correct an erroneous derivation of the expected overflow term, as well as derive an exact expression for the expected cost function, and hence optimal reorder level, instead of the approximate one used by Eroglu et al. (2013).

DOI

10.1111/poms.12357

Sources

openalex

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓