Abstract
Wu and Ouyang (2003) discuss an integrated single-vendor single-buyer inventory system with shortage derived algebraically and present an algorithm to solve it. Because of an integer constraint for one of the three decision variables, their proof of a global cost minimum is incomplete. This note justifies the algorithm described in Wu and Ouyang (2003).
Acknowledgements
The author greatly appreciates the anonymous referees for their valuable and helpful suggestions regarding an earlier version of this paper.