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      • Department of Industrial Engineering
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      Note on the backroom effect in retail operations

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      Author
      Atan, Z.
      Erkip, N.
      Date
      2015
      Source Title
      Production and Operations Management
      Print ISSN
      1059-1478
      Electronic ISSN
      1937-5956
      Publisher
      Wiley-Blackwell
      Volume
      24
      Issue
      11
      Pages
      1833 - 1834
      Language
      English
      Type
      Article
      Item Usage Stats
      130
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      147
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      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.
      Keywords
      (r, q) policy
      Backroom
      Retail operations
      Permalink
      http://hdl.handle.net/11693/26596
      Published Version (Please cite this version)
      http://dx.doi.org/10.1111/poms.12357
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      • Department of Industrial Engineering 677
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