| Article ID: | iaor201112225 |
| Volume: | 32 |
| Issue: | 3 |
| Start Page Number: | 369 |
| End Page Number: | 376 |
| Publication Date: | May 2011 |
| Journal: | Optimal Control Applications and Methods |
| Authors: | Xu Ningxiong |
| Keywords: | time series: forecasting methods, inventory: order policies, control |
This note generalizes Fukuda's two-alternate-lead-times model (1964) with linear ordering costs to the case where the ordering costs are convex. We use lattice programming to show the qualitative properties of an optimal ordering policy if the ordering costs are convex and to further characterize the structure of an optimal ordering policy if the ordering costs are convex and piecewise linear.