| Article ID: | iaor1999558 |
| Country: | Netherlands |
| Volume: | 55 |
| Issue: | 2 |
| Start Page Number: | 143 |
| End Page Number: | 148 |
| Publication Date: | Jul 1998 |
| Journal: | International Journal of Production Economics |
| Authors: | Fong Duncan K.H., Fu Haizhen |
We prove the convexity of the objective function for any continuous demand distribution for a common component inventory problem as considered by Jönsson and Silver. This result guarantees that a local optimum is the global optimum. It facilitates the determination of optimal stock levels for the components.