In this work, we deal with the problem of establishing which parameters impact an inventory policy the most. A new sensitivity measure ðGÞ is introduced by relating the differential importance (D) and the comparative statics (CS) techniques. We discuss the properties of the new indicator, and show that it shares the additivity property. We provide the expression of G for optimization models. Numerical results are offered for the sensitivity analysis of a recently introduced inventory management model.
Differential Importance and Comparative Statics: An Application to Inventory Management
BORGONOVO, EMANUELE
2008
Abstract
In this work, we deal with the problem of establishing which parameters impact an inventory policy the most. A new sensitivity measure ðGÞ is introduced by relating the differential importance (D) and the comparative statics (CS) techniques. We discuss the properties of the new indicator, and show that it shares the additivity property. We provide the expression of G for optimization models. Numerical results are offered for the sensitivity analysis of a recently introduced inventory management model.
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