Application of average dynamic programming to inventory systems

Oscar Vega-Amaya () and Raúl Montes- de-Oca ()

Mathematical Methods of Operations Research, 1998, vol. 47, issue 3, 471 pages

Abstract: We show the existence ofaverage cost (AC-) optimal policy for an inventory system withuncountable state space; in fact, the AC-optimal cost and an AC-optimal stationary policy areexplicitly computed. In order to do this, we use a variant of thevanishing discount factor approach, which have been intensively studied in recent years but the available results not cover the inventory problem we are interested in. Copyright Physica-Verlag 1998

Keywords: Dynamic programming; discrete-time Markov control processes; average cost; unbounded costs and controls; inventory systems (search for similar items in EconPapers)
Date: 1998
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DOI: 10.1007/BF01198405

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