On the Optimality of Generalized (s, S) Policies
- 1 March 1971
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Management Science
- Vol. 17 (7) , 411-426
- https://doi.org/10.1287/mnsc.17.7.411
Abstract
A standard inventory model is examined with a concave increasing ordering cost function rather than simply a linear one with a setup cost. A generalized (s, S) policy is shown to be optimal in the n-period problem. A generalization of k-convex and quasi-convex functions to quasi-k-convex functions is required in the process. The probability densities of demand must be one-sided Pólya densities.Keywords
This publication has 0 references indexed in Scilit: