Abstract
We show that under a set of conditions, both the maximal profit function and the objective function in several lost-sales inventory models with fixed costs are quasiconcave. Not only is the quasiconcavity property useful computationally, it also leads to a sharper characterization of the optimal policies. Neither the proof of the quasiconcavity property itself nor the proof of the optimal policies by using the property requires the machinery of K-concavity or any of its K-related extensions, and hence they are intuitively appealing. © 2012 INFORMS.
Original language | English |
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Pages (from-to) | 286-291 |
Number of pages | 6 |
Journal | Operations Research |
Volume | 60 |
Issue number | 2 |
DOIs | |
Publication status | Published - 1 Mar 2012 |
Externally published | Yes |
Keywords
- Fixed costs
- Optimal policies
- Periodic-review inventory systems
- Quasiconcavity
ASJC Scopus subject areas
- Computer Science Applications
- Management Science and Operations Research