Inventory Models with Markovian Demands and Cost Functions of Polynomial Growth

D. Beyer, Suresh Sethi and M. Taksar
Additional contact information
D. Beyer: Hewlett-Packard Laboratories
M. Taksar: State University of New York at Stony Brook

Journal of Optimization Theory and Applications, 1998, vol. 98, issue 2, No 2, 323 pages

Abstract: Abstract This paper studies stochastic inventory problems with unbounded Markovian demands, ordering costs that are lower semicontinuous, and inventory/backlog (or surplus) costs that are lower semicontinuous with polynomial growth. Finite-horizon problems, stationary and nonstationary discounted-cost infinite-horizon problems, and stationary long-run average-cost problems are addressed. Existence of optimal Markov or feedback policies is established. Furthermore, optimality of (s, S)-type policies is proved when, in addition, the ordering cost consists of fixed and proportional cost components and the surplus cost is convex.

Keywords: Dynamic inventory models; Markov chains; dynamic programming; finite horizon; infinite horizon; cyclic demand; (s; S)-policy (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://link.springer.com/10.1023/A:1022633400174 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:joptap:v:98:y:1998:i:2:d:10.1023_a:1022633400174

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10957/PS2

DOI: 10.1023/A:1022633400174

Access Statistics for this article

Journal of Optimization Theory and Applications is currently edited by Franco Giannessi and David G. Hull

More articles in Journal of Optimization Theory and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().