Note---On the Minimum of a Nonconvex Inventory Function

Chandrasekhar Das
Additional contact information
Chandrasekhar Das: School of Business, University of Northern Iowa, Cedar Falls, Iowa 50614-0125

Management Science, 1988, vol. 34, issue 8, 1023-1026

Abstract: The paper deals with a nonconvex, bivariate minimization problem arising in a heuristic inventory model of Hadley and Whitin (Hadley, G., T. M. Whitin. 1963. Analysis of Inventory Systems. Prentice-Hall, Inc., Englewood Cliffs, NJ.). An approach is suggested whereby the existence and uniqueness of the solution can be determined even though the model does not fulfill the standard second-order conditions. It is observed that the global minimum for this model can be identified by means of the first-order conditions and the shape of the lead time demand distribution. In particular, the local minimum is also the global minimum for this model when lead time demand distribution is either unimodal or J-shaped.

Keywords: inventory/production; approximations; ordering policy; stochastic models (search for similar items in EconPapers)
Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.34.8.1023 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:34:y:1988:i:8:p:1023-1026

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().