Finding Optimal (s, S) Policies Is About As Simple As Evaluating a Single Policy
- 1 August 1991
- journal article
- research article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Operations Research
- Vol. 39 (4), 654-665
- https://doi.org/10.1287/opre.39.4.654
Abstract
In this paper, a new algorithm for computing optimal (s, S) policies is derived based upon a number of new properties of the infinite horizon cost function c(s, S) as well as a new upper bound for optimal order-up-to levels S* and a new lower bound for optimal reorder levels S*. The algorithm is simple and easy to understand. Its computational complexity is only 2.4 times that required to evaluate a (specific) single (s, S) policy. The algorithm applies to both periodic review and continuous review inventory systems.This publication has 4 references indexed in Scilit:
- Computing optimal (s, S) policies in inventory models with continuous demandsAdvances in Applied Probability, 1985
- An Efficient Algorithm for Computing Optimal (s, S) PoliciesOperations Research, 1984
- Evaluating the Effectiveness of a New Method for Computing Approximately Optimal (s, S) Inventory PoliciesOperations Research, 1980
- The Power Approximation for Computing (s, S) Inventory PoliciesManagement Science, 1979