| Article ID: | iaor198891 |
| Country: | United States |
| Volume: | 34 |
| Issue: | 10 |
| Start Page Number: | 1271 |
| End Page Number: | 1272 |
| Publication Date: | Oct 1988 |
| Journal: | Management Science |
| Authors: | Gerchak Yigal |
| Keywords: | inventory |
Zangwill has constructed an example which purports to show that reducing set up costs can increase total cost. The paper shows that this happened as a result of restricting the policies to be of a ‘greedy’ nature. The expected cost of truly optimal policies is shown not to increase.