Non-stationary (s, S) Policy Calculator

This online tool tackles the inventory control problem in a finite-horizon periodic-review system. It incorporates fixed replenishment setup costs and linear costs for holding and backorders. The tool determines the parameters for the optimal (s, S) inventory control policy. For a given set of parameters, it calculates the re-order points (s) and order-up-to levels (S) for each period, aiming to minimize the expected total costs over the planning horizon. Additionally, it displays the resulting control policy.

API documentation

References:

Herbert E. Scarf. Optimality of (s, S) policies in the dynamic inventory problem. In K. J. Arrow, S. Karlin, and P. Suppes, editors, Mathematical Methods in the Social Sciences, pages 196–202. Stanford University Press, Stanford, CA, 1960

Roberto Rossi, Inventory Analytics. Cambridge, UK: Open Book Publishers, 2021