Publication Type
Journal Article
Version
acceptedVersion
Publication Date
8-2013
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 L♮-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.
Keywords
(r, Q) policy, (s, T) policy, discrete convexity, inventory/production
Discipline
Operations and Supply Chain Management
Research Areas
Operations Management
Publication
European Journal of Operational Research
Volume
229
Issue
1
First Page
95
Last Page
105
ISSN
0377-2217
Identifier
10.1016/j.ejor.2013.02.054
Publisher
Elsevier
Citation
ANG, Marcus; SONG, Jing-Sheng; WANG, Mingzheng; and ZHANG, Hanqin.
On Properties of Discrete (r,q) and (s,T) Inventory Systems. (2013). European Journal of Operational Research. 229, (1), 95-105.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/3022
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.ejor.2013.02.054