| Abstract: | This dissertation deals with the determination of two optimal policies to be used by dealers in stocking repair parts under conditions commonly encountered in the capital goods industry, namely: a. Certain repair parts (items) can be returned to the manufacturer at stated intervals; b. Those items which can be returned have a higher probability of demand than those which cannot be returned; c. The practice in this industry is to charge less for items ordered for delivery on regular shipments than for special ordered items; and d. Many of the items demanded are new items, i.e., no record of precious demand - and thus, no demand pattern - exists. Hence policies are needed which minimize the sum of the inventory storage costs plus ordering costs, whether the latter be for stock orders or special orders. ... |
|---|