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New bounds of(s,S)policies in periodical review inventory systems
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We study the stochastic inventory problem with optimal(s,S)policies.In a finite horizon model with lost sales,we establish new lower and upper bounds of s and S.These bounds have structural implications for the optimal solutions.Consequently,when demand has a generalized phase type distribution,there are no more than a pre-determined number of minima.Similar bounds can also be found for the system where unsatisfied demand is backordered instead of lost sales.
inventory control(s,S)policiesgeneralized phase type distributionlost sales
XU Yan-yi
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School of Management,Shanghai University,Shanghai 200444,P.R.China
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