On the optimality of ( s, S )-strategies in a minimax inventory model with average cost criterion
Heinz‐Uwe Küenle · Optimization · 1991
A stochastic dynamic inventory problem is considered in which the distribution function of the demand and the holding and shortage cost depend on an unknown parameter. This problem is interpreted as a Markov game with complete information, It is shown that for the average cost criterion as for the discounted cost criterion an optimal (s, S)-strategy exists. Bounds for the parameters of such a strategy are given.