Optimality of Myopic Ordering Policies for Inventory Model with Stochastic Supply

Do Ba Khang () and Okitsugu Fujiwara
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Do Ba Khang: School of Management, Asian Institute of Technology, Bangkok, Thailand
Okitsugu Fujiwara: School of Management, Asian Institute of Technology, Bangkok, Thailand

Operations Research, 2000, vol. 48, issue 1, 181-184

Abstract: This paper addresses a discrete time inventory model where the maximum amount of supply from which instantaneous replenishment orders can be made is a random variable. Optimal ordering policies are characterized as critical number policies with monotone increasing optimal critical values. A sufficient condition is then presented for myopic ordering policies to be optimal.

Keywords: Dynamic programming; optimal control; Inventory/production; operating characteristics: supply uncertainty (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:48:y:2000:i:1:p:181-184

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