Sackrowitz, Harold; Samuel-Cahn, Ester - In: Management Science 21 (1974) 3, pp. 261-270
Consider a production process where the categories of successive units form a Markov chain with known transition matrix. Whenever a unit is produced, we may, at a fixed cost, inspect it. If its value is less than maximal, we may replace it with a perfect (maximal value) unit. We obtain optimal...