ISSN:
1573-2878
Keywords:
Dynamic inventory models
;
Markov chains
;
dynamic programming
;
finite horizon
;
infinite horizon
;
cyclic demand
;
(s, S)-policy
Source:
Springer Online Journal Archives 1860-2000
Topics:
Mathematics
Notes:
Abstract This paper studies stochastic inventory problems with unbounded Markovian demands, ordering costs that are lower semicontinuous, and inventory/backlog (or surplus) costs that are lower semicontinuous with polynomial growth. Finite-horizon problems, stationary and nonstationary discounted-cost infinite-horizon problems, and stationary long-run average-cost problems are addressed. Existence of optimal Markov or feedback policies is established. Furthermore, optimality of (s, S)-type policies is proved when, in addition, the ordering cost consists of fixed and proportional cost components and the surplus cost is convex.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1022633400174
