Open AccessOn the Optimality of ( s , S )
Author(s) -
Lakdére Benkherouf
Publication year - 2008
Publication title -
international journal of stochastic analysis
Language(s) - English
Resource type - Journals
eISSN - 2090-3340
pISSN - 2090-3332
DOI - 10.1155/2008/158193
Subject(s) - algorithm , computer science , mathematics , artificial intelligence
This paper revisits the classical discrete-time stationary inventory model. A new proof, based on the theory of quasivariational inequality (QVI), of the optimality of (s,S) policy is presented. This proof reveals a number of interesting properties of the optimal cost function. Further, the proof could be used as a tutorial for applications of QVI to inventory control
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