Capacitated inventory problems with fixed order costs: Some optimal policy structure

Using a generalization of Scarf's K-convexity, we are able to show that the optimal policy for the periodic review inventory problem with xed ordering costs and nite capacity has an (s; S)-like structure. In particular, we are able to divide the parameter space into four regions. In two of these regions the optimal policy is completely speci ed. In the other two, it is partially speci ed.