Optimal Policies for Inventory Systems with Concave Ordering Costs
نویسندگان
چکیده
In this paper we characterize the structure of optimal policies for periodic review inventory systems with concave ordering costs. By extending the Scarf (1958) model to systems with piecewise linear concave ordering costs, we show the optimality of generalized (s, S) policies for general demand distributions. We do so by (a) introducing a conditional monotonicity property for the order-up-to levels, (b) transforming the problem into one with n dimensions, and (c) by applying the notion of K-convexity in R to this problem. We show how our results can be extended to systems with fixed leadtimes or lost sales.
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تاریخ انتشار 2010