Note: Optimality conditions for an (s, S) policy with proportional and lump-sum penalty costs

Management Science

Volumn 48, Issue 12, 2002, Pages 1635-1639

  Çetinkaya, Sila ^a   Parlar, Mahmut ^b  

^a Department of Electrical and Computer Engineering   (United States)

^b MCMASTER UNIVERSITY   (Canada)

Author keywords

K convexity; Stochastic Inventory Models

Indexed keywords

COSTS; INVENTORY CONTROL; MATHEMATICAL MODELS; OPTIMIZATION; PROBABILITY DENSITY FUNCTION; RANDOM PROCESSES;

K-CONVEXITY; OPTIMALITY; SHORTAGE COST; STOCHASTIC INVENTORY MODEL;

MANAGEMENT SCIENCE;

EID: 0036969802     PISSN: 00251909     EISSN: None     Source Type: Journal    
DOI: 10.1287/mnsc.48.12.1635.443     Document Type: Article

References (5)

1. Aneja, Y. P., A. H. Noori. 1997. The optimality of (s, S) policies for a stochastic inventory problem with proportional and lump-sum penalty costs. Management Sci. 33(6) 750-755.
2. Bell, P., A. Hamidi-Noori. 1984. Foreign currency inventory management in a branch bank. J. Oper. Res. Soc. 35 513-524.
3. Bertsekas, D. P. 1987. Dynamic Programming: Deterministic and Stochastic Models. Prentice-Hall, Englewood Cliffs, NJ.
4. Scarf, H. 1960. The optimality of (S, s) policies in the dynamic inventory problem. K. J. Arrow, S. Karlin, P. Suppes, eds. Mathematical Methods in the Social Sciences. Stanford University Press, Stanford, CA.
5. Shreve, S. 1987. The optimality of (s, S) policies in the dynamic inventory problem with lost-sales. An abbreviated proof of the optimality of this policy was presented as a problem in D. P. Bertsekas, Dynamic Programming: Deterministic and Stochastic Models, Prentice-Hall, Englewood Cliffs, NJ, 92-93.