Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6897926 | European Journal of Operational Research | 2013 | 11 Pages |
Abstract
We consider single-item (r, q) and (s, T) inventory systems with integer-valued demand processes. While most of the inventory literature studies continuous approximations of these models and establishes joint convexity properties of the policy parameters in the continuous space, we show that these properties no longer hold in the discrete space, in the sense of linear interpolation extension and Lâ®-convexity. This nonconvexity can lead to failure of optimization techniques based on local optimality to obtain the optimal inventory policies. It can also make certain comparative properties established previously using continuous variables invalid. We revise these properties in the discrete space.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Marcus Ang, Jing-Sheng Song, Mingzheng Wang, Hanqin Zhang,