Average Cost Optimality in Inventory Models with Markovian Demands and Lost Sales

This paper is concerned with long-run average cost minimization of a stochastic inventory problem with Markovian demand, fixed ordering cost, convex surplus cost, and lost sales. The states of the Markov chain represent different possible states of the environment. Using a vanishing discount approach, a dynamic programming equation and the corresponding verification theorem are established. Finally, the existence of an optimal state-dependent (s; S) policy is proved

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Year of publication:	[2014]
Authors:	Beyer, Dirk
Other Persons:	Sethi, Suresh (contributor)
Publisher:	[2014]: [S.l.] : SSRN

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Extent:	1 Online-Ressource (19 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: ANALYSIS, CONTROL AND OPTIMIZATION OF COMPLEX DYNAMIC SYSTEMS, E.K. Boukas, R. P. Malhame, eds., Chapter 1, pp. 3-23, Springer, 2005 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 3, 2003 erstellt
Classification:	M11 - Production Management ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012751307