LIFO vs FIFO in Inventory Depletion Management

Abstract

In their paper (Derman, C., M. Klein. Inventory depletion management. Technical Report No. 2, Oct. 1957, Statistical Engineering Group, Columbia University.), Derman and Klein present sufficient conditions on the field life of an item function under which a LIFO policy is optimal. This paper presents an alternate set of sufficient conditions under which a LIFO policy is optimal.