Inventory Models with Cost Changes
Published Online:1 Feb 1990https://doi.org/10.1287/opre.38.1.53
Abstract
Two of the basic assumptions of economic order quantity models are an infinite horizon and static costs. In this paper, both assumptions are relaxed and results on the form of the optimal inventory policy are developed for both finite and infinite horizon models with changes in any or all costs. These results are used to develop short procedures for the computation of the optimal policy.
