Technical Note—On the Quasiconcavity of Lost-Sales Inventory Models with Fixed Costs
Operations Research · 2012 · Volume 60 · Issue 2
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.
Keywords
periodic-review inventory systems, fixed costs, optimal policies, quasiconcavity
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