Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Inventory control for periodic intermittent demand
Sarah Van der Auweraer, Joachim Arts, Thomas van Pelt
University of Luxembourg, Luxembourg
Intermittent demand is difficult to forecast, as many periods have no demand. The time between demands is often not memoryless but –contrary to implicit model assumptions—displays periodicity. Consequently, the time since the last demand is a predictor for future demand. We propose a demand model that accommodates such periodicity and show that the optimal inventory policy is a state-dependent base-stock policy, where the order-up-to-levels depend on the time since the last demand.
Managerial flexibility and inventory management
Karca D. Aral1, Erasmo Giambona1, Luk Van Wassenhove2
1Syracuse University, United States of America; 2INSEAD
We study how managers’ potential personal costs due to shareholder scrutiny affect inventory policies exploiting a quasi-natural experiment. Using a staggered DiD approach, we find that firms incorporated in constituency states increased inventory by 5.2% relative to control firms, indicating a heightened focus on customer service levels. To our best knowledge, our paper is the first to study managerial incentives pertaining to inventory management in a quasi-natural experimental setting.
