Optimality of (s, S) Policies for a Stochastic Inventory Model with Proportional and Lump-Sum Shortage Costs

This note is concerned with the optimality of an (s; S) policy for a single-item infinite-horizon inventory model when the penalty cost is made-up of two parts: A lump-sum cost independent of the amount of the shortage and a variable cost proportional to the amount of the shortage. Using a Quasi-Variational Inequality (QVI) approach, an (s; S) policy is shown to be optimal under some mild technical conditions

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Year of publication:	2019
Authors:	Benkherouf, Lakdere ; Sethi, Suresh
Publisher:	[S.l.] : SSRN

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Extent:	1 Online-Ressource (14 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 8, 2010 erstellt
Other identifiers:	10.2139/ssrn.1546743 [DOI]
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; M11 - Production Management
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014198392