Note: Optimality Conditions for an (s, S) Policy with Proportional and Lump-Sum Penalty Costs

References

  • Aneja Y. P., Noori A. H. The optimality of (s, S) policies for a stochastic inventory problem with proportional and lump-sum penalty costs. Management Sci (1997) 33(6):750–755Google Scholar
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  • Shreve S. The optimality of (s, S) policies in the dynamic inventory problem with lost-sales. Dynamic Programming: Deterministic and Stochastic Models (1987) (Prentice-Hall, Englewood Cliffs, NJ) 92–93An abbreviated proof of the optimality of this policy was presented as a problem in D. P. BertsekasGoogle Scholar
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