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- W2080461826 abstract "We consider a discrete review, single product, dynamic inventory model. With the exception of the ordering cost function, we make the usual assumptions (see [8]). The distinguishing feature of our model is that we merely assume that the ordering cost function for each period is non-decreasing and subadditive. Denoting the smallest minimizer of the expected costs for period i by $bar y_i $, we establish that when x is the inventory level entering period i, the optimal stock level $y_i (x)$ after ordering in period i is x if $xgeqq bar y_i $. Moreover, if the ordering cost (apart from a linear term) is eventually constant, then we can show that $y_i ( cdot )$ is lower semicontinuous and satisfies $y_i (x) = S_i $ for $x < s_i $ and $y_i (x)leqq S_i $ for $s_i leqq x < bar y_i $ where $s_i leqq bar y_i leqq S_i $. Also, simple conditions are given which imply (the planning horizon theorem) $S_i = bar y_i $. Upon assuming that the ordering cost is the multiple set-up cost, a partial characterization of an optimal ordering policy is obtained while a complete (two-parameter) characterization is obtained for the one period model. Finally, we treat the discounted stationary, infinite horizon version of our model." @default.
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- W2080461826 date "1969-05-01" @default.
- W2080461826 modified "2023-09-27" @default.
- W2080461826 title "Optimal Inventory Policy with Subadditive Ordering Costs and Stochastic Demands" @default.
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- W2080461826 doi "https://doi.org/10.1137/0117052" @default.
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