Abstract
We study the paper of Levy published in the journal of Management Sciellce. His paper discussed the cost influences for performing inventory policy calculated from inaccurate information. We point out that several important improvements can be achieved to refine his results. The purposes of this paper is threefold. First, we show that the Levy’s result on the proportionate augment in price can be further simplified. Second, there are symmetric relations in the stochastic demand model. Third, two results from the sensitivity analysis are presented.