Multiple (s, S) Policies and then-Period Inventory Problem

Abstract

In a previous paper the concept of a multiple ( s , S , policy, generalizing the well-known ( s, S ) policy, was introduced, and it was shown that for a broad class of situations some multiple ( s, S ) policy would minimize costs when a single decision was to be made whether or not to order goods to add to inventory. In the present paper it is shown that when n such decisions must be made, some multiple ( s, S ) policy will minimize total (discounted) costs, though under slightly more restrictive conditions.