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| Author: | Gallego, G. Scheller-Wolf, A. |
| Title: | Capacitated inventory problems with fixed order costs: some optimal policy structure |
| Journal: | European Journal of Operational Research
2000 : NOV 1, VOL. 126:3, p. 603-613 |
| Index terms: | INVENTORIES STOCHASTIC PROCESSES CAPACITY |
| Language: | eng |
| Abstract: | Almost 40 years ago, H. Scarf established the optimal (s,S) policy structure for the periodic review inventory problem with fixed ordering costs and no capacity constraint. Since then, the capacitated problem has resisted characterization. In the present paper the authors partially bridge this gap; using a generalization of Scarf's K-convexity the authors show that the optimal capacitated policy has an (s,S) - like structure. To do so the authors divide the parameter space in four regions. |
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