Abstract
The aim of production management is to meet the customers’ wishes as far as possible by an optimal way. So, the customer-oriented production management becomes increasingly important with time. Based on this principle, this paper considers the (s, Q) inventory system with customer line items backordered. At first, this paper shows that the total relevant cost function is convex. Then, with the convexity, a solution procedure is developed to generalize that described by Silver et al. to two decision variables. Numerical examples are also given to illustrate the solution procedure.
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