A study on iterative algorithm for stochastic distribution free inventory models (Q369816)

Summary: We studied the iterative algorithm in [\textit{C.-T. Tung} et al., Abstr. Appl. Anal. 2010, Article ID 878645, 8 p. (2010; Zbl 1201.90021)] to find out that their assertion is questionable. We derived two new relations between safe factor and order quantity so that we can execute the iterative algorithm proposed by Wu and Ouyang [``Inventory model with defective items'', Comput. Ind. Engineering 39, No. 1--2, 173--185 (2001)]. We have proved that three generated sequences indeed converge to provide a theoretical validation for their iterative procedure.