Optimal periodic replenishment policies for spectrally positive L\'evy demand processes

Jos\'e-Luis P\'erez, Kazutoshi Yamazaki and Alain Bensoussan

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Abstract: We consider a version of the stochastic inventory control problem for a spectrally positive L\'evy demand process, in which the inventory can only be replenished at independent exponential times. We show the optimality of a periodic barrier replenishment policy that restocks any shortage below a certain threshold at each replenishment opportunity. The optimal policies and value functions are concisely written in terms of the scale functions. Numerical results are also provided.

Date: 2018-06, Revised 2020-09
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1806.09216

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