A Probabilistic Production and Inventory Problem

F. d'Epenoux
Additional contact information
F. d'Epenoux: Union Européenne Industrielle et Financière, Paris

Management Science, 1963, vol. 10, issue 1, 98-108

Abstract: R. Howard (R. Howard.1960. Dynamic Programming and Markov Processes. John Wiley and Sons, Inc., New York.) and A. Manne (A. Manne. 1960. Linear programming and sequential decisions. Management Science, April.) have suggested two methods for optimizing average costs per unit time by means of a sequential decision rule. This rule gives order quantities as a function of initial stock levels, and is based upon the assumption of a Markov process which is both homogenous and discrete. The formulation does not include any restrictive hypothesis on the structure of costs. This paper presents a synthesis of both dynamic and linear programming methods applicable to the same kind of model for the case of time discounting.

Date: 1963
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.10.1.98 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:10:y:1963:i:1:p:98-108

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().