Inventory Policy in the Presence of Market Disruptions

Hung-Po Chao
Additional contact information
Hung-Po Chao: Electric Power Research Institute, Palo Alto, California

Operations Research, 1987, vol. 35, issue 2, 274-281

Abstract: This paper presents a dynamic model concerning optimal inventory policies in the presence of market disruptions, which are often characterized by events with uncertain arrival time, severity and duration. The model is based on the framework of a continuous-time Markov decision process with a finite state space. We develop a general characterization of the optimal inventory policy, interpret it in economic terms, and then apply it to two special cases, yielding explicit analytic results.

Keywords: 120 Markov decision process; 131 economic interpretations and applications; 331 optimal inventory policy (search for similar items in EconPapers)
Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://dx.doi.org/10.1287/opre.35.2.274 (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:oropre:v:35:y:1987:i:2:p:274-281

Access Statistics for this article

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