Abstract
The focus of this chapter is on substitutable inventory systems, in which the surplus of products that are of higher quality and/or possess more functionalities can be used if necessary to substitute for lesser products. This way, any negative impact or penalty associated with unmet demand or lost sales can be mitigated. Substitutable inventory is widely practiced in a variety of industry sectors, ranging from electronics to retail and car rental, to hotels and airlines.
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Yao, D.D., Zheng, S. (2003). Optimal Inventory Control with Substitution: Single- and Multi-Period Models. In: Shanthikumar, J.G., Yao, D.D., Zijm, W.H.M. (eds) Stochastic Modeling and Optimization of Manufacturing Systems and Supply Chains. International Series in Operations Research & Management Science, vol 63. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0373-6_8
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DOI: https://doi.org/10.1007/978-1-4615-0373-6_8
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