Average Cost Optimality in Inventory Models with Markovian Demands and Lost Sales
Download or Read eBook Average Cost Optimality in Inventory Models with Markovian Demands and Lost Sales PDF written by Dirk Beyer and published by . This book was released on 2014 with total page 19 pages. Available in PDF, EPUB and Kindle.
Author | : Dirk Beyer |
Publisher | : |
Total Pages | : 19 |
Release | : 2014 |
ISBN-10 | : OCLC:1290713867 |
ISBN-13 | : |
Rating | : 4/5 (67 Downloads) |
Book Synopsis Average Cost Optimality in Inventory Models with Markovian Demands and Lost Sales by : Dirk Beyer
Book excerpt: This paper is concerned with long-run average cost minimization of a stochastic inventory problem with Markovian demand, fixed ordering cost, convex surplus cost, and lost sales. The states of the Markov chain represent different possible states of the environment. Using a vanishing discount approach, a dynamic programming equation and the corresponding verification theorem are established. Finally, the existence of an optimal state-dependent (s; S) policy is proved.