Economic Theory and the World of Practice: A Celebration of the (S, s) Model

摘要

The (S, s) model represents in ideal form the interplay between economic theory and the world of application. It was created during a period in which microeconomic theorists and applied mathematicians forged many of the tools that dominate economic analysis to this day, including linear programming, dynamic programming, and game theory. These conceptual advances resulted in large part from the desire to answer important practical questions. One such question of interest in both business and military circles concerned inventory control. For any stored good in more-or-less constant use, there is a need to keep stock on hand.