This chapter is mainly concerned with the optimality conditions relative to the cost rate function E(s,Δ). We also establish some useful bounds on the optimal policy. Most of the results are again given for the general model under continuous review which includes the periodic review model as a special case. Results for two other special cases, involving immediate deliveries and unit demands, are provided separately in section 4.2.
KeywordsOptimal Policy Fill Rate Periodic Review Regenerative Inventory System Reorder Point
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