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On the optimality of \((s,S)\) inventory policies: A quasivariational approach. (English) Zbl 1153.90301

Summary: This paper revisits the classical discrete-time stationary inventory model. A new proof, based on the theory of quasivariational inequality (QVI), of the optimality of \((s,S)\) policy is presented. This proof reveals a number of interesting properties of the optimal cost function. Further, the proof could be used as a tutorial for applications of QVI to inventory control.

MSC:

90B05 Inventory, storage, reservoirs
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References:

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