In this paper, we develop a new probability criterion which is to minimize the sum of all probabilities that the inventory at the end of each stage exceeds a fixed level. It is shown that the optimal order policy is simoly characterized by a certain critical numberwhen the demand density is a Polya frequency function. Finally, a similar result is given in the case of λ periods lag in supply.

In this paper, we develop a new probability criterion which is to minimize the sum of all probabilities that the inventory at the end of each stage exceeds a fixed level. It is shown that the optimal order policy is simoly characterized by a certain critical numberwhen the demand density is a Polya frequency function. Finally, a similar result is given in the case of λ periods lag in supply.