On the Optimality of s, S Inventory Policies: A Quasivariational Approach
نویسنده
چکیده
Consider an inventory model which consists in controlling the level of stock of a single product where the demands D1, D2, . . . for the product in periods 1, 2, . . . are independently and identically distributed i.i.d random variables with density function ψ, and finite mean μ < ∞. Assume that at the beginning of each period the system is reviewed and we are allowed to increase the level of stock to any level we wish. Orders are assumed to be delivered immediately. Let f be a real-valued function representing the holding and shortage cost with f 0 0 and f x > 0 for x / 0. The cost c x of ordering an amount x is given by
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