ON THE OPTIMALITY OF GENERALIZED (s,S) POLICIES,
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 Polya densities. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1970
- Accession Number
- AD0700573
Entities
People
- Evan L. Porteus
Organizations
- RAND Corporation