Gallego, Guillermo - In: Management Science 44 (1998) 2, pp. 219-233
for Q and r, and upper bounds on the optimal long run average cost and on the optimal batch size. As a byproduct we … addition, when the newsvendor cost is known, we obtain sharper lower and upper bounds on the long run average cost. These … bounds clarify, in an exceedingly simple way, the cost impact of fixed setup costs, demand variability, and constraints on …