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Technical Note---On the Quasiconcavity of Lost-Sales Inventory Models with Fixed Costs

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  • Qing Li

    (School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong)

  • Peiwen Yu

    (School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong)

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.

Suggested Citation

  • Qing Li & Peiwen Yu, 2012. "Technical Note---On the Quasiconcavity of Lost-Sales Inventory Models with Fixed Costs," Operations Research, INFORMS, vol. 60(2), pages 286-291, April.
    • Handle: RePEc:inm:oropre:v:60:y:2012:i:2:p:286-291
    DOI: 10.1287/opre.1110.1034
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    References listed on IDEAS

    as
    1. Qing Li & Xiaoli Wu & Ki Ling Cheung, 2009. "Optimal Policies for Inventory Systems with Separate Delivery-Request and Order-Quantity Decisions," Operations Research, INFORMS, vol. 57(3), pages 626-636, June.
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    Cited by:

    1. Wang, Huihui & Yu, Yimin & Zhang, Wei & Hua, Zhongsheng, 2019. "Procurement strategies for lost-sales inventory systems with all-units discounts," European Journal of Operational Research, Elsevier, vol. 272(2), pages 539-548.
    2. Qing Li & Peiwen Yu & Xiaoli Wu, 2016. "Managing Perishable Inventories in Retailing: Replenishment, Clearance Sales, and Segregation," Operations Research, INFORMS, vol. 64(6), pages 1270-1284, December.

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