On the Optimality of Generalized (<i>s</i>, <i>S</i>) Policies

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.

• 저널Management Science · 17(7) · 411–426
• 토픽Probability and Risk Models · Management Science and Operations Research
• DOI10.1287/mnsc.17.7.411
• 저자Evan L. Porteus