Cost optimization in the (S-1,S)(S-1,S) lost sales inventory model with multiple demand classes

For the (S-1,S)(S-1,S) lost sales inventory model with multiple demand classes that have different lost sales penalty cost parameters, three accurate and efficient heuristic algorithms are presented that, at a given base stock level, aim to find optimal values for the critical levels, i.e., values that minimize inventory holding and penalty cost.