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A new approach to two-location joint inventory and transshipment control via $$L^{\text{natural}}$$-convexity. (English) Zbl 1408.90005
Summary: We provide a new approach to the analysis of the optimal joint inventory and transshipment control with uncertain capacities by employing the concept of $$L^{\text{natural}}$$-convexity. In this approach, we use variable transformation techniques and apply two recent results to establish the $$L^{\text{natural}}$$-concavity of the profit-to-go functions, which significantly simplifies the analysis in the existing literature. Some variations of the basic model can also be analyzed using our approach with minor modifications.

##### MSC:
 90B05 Inventory, storage, reservoirs 90C27 Combinatorial optimization 90C39 Dynamic programming
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##### References:
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