A note from Marziye

you should keep inventory when the backorder cost is higher than the holding cost over the review period. If not-since keeping a unit in stock is more expensive than missing one item in stock-you should use a make-to-order policy (i. e., produce only when a client makes an order) rather than a make-to-stock policy (produce and store goods in advance).

Marziye Inventory Optimization, page 129 · October 2, 2023 Save to shelf
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