Dynamic Modeling of Inventories Subject to Obsolescence

George W. Brown, John Y. Lu and Robert J. Wolfson
Additional contact information
George W. Brown: University of California at Los Angeles
John Y. Lu: IBM Federal Systems Division, Bethesda, Maryland
Robert J. Wolfson: The RAND Corporation, Santa Monica, California

Management Science, 1964, vol. 11, issue 1, 51-63

Abstract: A class of models for optimizing inventory costs is presented which takes account of stochastic obsolescence of an inventory item. Obsolescence is defined as a demand state, in such a fashion as to permit appraisal, ex ante, of the probability of arrival of obsolescence at future times, under the assumption that there are many possible states of demand. Response to obsolescence is introduced by means of a Bayesian procedure. In the most complete model this is done by modification of the state probability vector of a Markov process. Optimization is accomplished by means of a dynamic program.

Date: 1964
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.11.1.51 (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:11:y:1964:i:1:p:51-63

Access Statistics for this article

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