Key points are not available for this paper at this time.
Abstract This article was published as Appendix 6 in the second edition (1957) of the book entitled “The Theory of Inventory Management,” by Thomson M. Whitin, in order to reach an audience which might otherwise not be reached in the field of logistics. The Princeton University Press, who publish this book and who are the copyright owners, have granted permission to reprint the above material in the Naval Research Logistics Quarterly.
Wagner et al. (Sat,) studied this question.