Johnson, Ellis L. - In: Management Science 15 (1968) 1, pp. 80-101
For the infinite horizon, single item inventory problem, assume an ordering cost M(i) + K(j) for changing the stock level from i to j (for example, M(i) + K(j) - c \cdot (j - i) + K), a holding plus shortage cost l(j), and a probability \varphi (j, k) of demand j - k when the stock level is j....