no. 5
Optimal strategy for a periodic review inventory system with discounted variable cost and finite ordering capacity
RAIRO. Operations Research, Tome 56 (2022) no. 5, pp. 3461-3470

We study a periodic review inventory system with finite ordering capacity, and assume the variable ordering cost would be discounted when the ordering quantity is the full capacity. Applying the concept of strong CK-concavity, we show that the optimal pricing and ordering strategy could be partially characterized by an (S, S′, p) strategy in four regions depending on the starting inventory level per period. Numerical experiments verify the proposed strategy.

DOI : 10.1051/ro/2022154
Classification : 90B05, 90C39
Keywords: Optimal strategy, finite ordering capacity, discounted variable cost, periodic review inventory system 
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     author = {Zhu, Chenbo and Yang, Baimei and Ma, Hongwei and Gao, Chunyan and Chen, Jiahao},
     title = {Optimal strategy for a periodic review inventory system with discounted variable cost and finite ordering capacity},
     journal = {RAIRO. Operations Research},
     pages = {3461--3470},
     year = {2022},
     publisher = {EDP-Sciences},
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     language = {en},
     url = {https://www.numdam.org/articles/10.1051/ro/2022154/}
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Zhu, Chenbo; Yang, Baimei; Ma, Hongwei; Gao, Chunyan; Chen, Jiahao. Optimal strategy for a periodic review inventory system with discounted variable cost and finite ordering capacity. RAIRO. Operations Research, Tome 56 (2022) no. 5, pp. 3461-3470. doi: 10.1051/ro/2022154

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