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Consider the dynamic inventory problem when the ordering cost functioYl is linear with multiple set-up costS. In general, an optimal inventory policy is sensitive to the form of the ordering cost, so that the purpose of this note is to define a new policy, ie, a batch (s,S) policy and to show the sufficient conditions under which this policy is optimal.

OPTIMAL BATCH (s , S) POLICIES FOR THE MULTIPLE SET-UP ORDERING COSTS IN INVENTORY PROBLEM