K: the fixed ordering cost
h: the proportional holding cost
p: the penalty cost
d: the Poisson demand rate in each period
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