New structural properties of (s,S) policies for inventory models with lost sales

Yanyi Xu, Arnab Bisi, Maqbool Dada

Research output: Contribution to journalArticlepeer-review

Abstract

We revisit the classical inventory model for which (s,S) policies are optimal. We consider the finite and infinite horizon versions of the lost sales problem. New structural properties are developed for the optimal policy and cost function. These properties are then used to develop computational schemes for the lost sales problem with Erlang demands.

Original languageEnglish (US)
Pages (from-to)441-449
Number of pages9
JournalOperations Research Letters
Volume38
Issue number5
DOIs
StatePublished - Sep 1 2010

Keywords

  • (s,S) policies
  • Inventory
  • Lost sales

ASJC Scopus subject areas

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

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