In this paper, we use a Markov decision process (MDP) to model the joint inventory-promotion decision problem. The state variable of the MDP represents the demand state brought about by changing environmental factors as well as promotion decisions. The demand state in a period determines the...

The purpose of this note is to formulate and solve a dynamic optimization problem based on the Blattberg-Jeuland advertising model. Also examined is the behavior of the optimal long-run equilibrium level of advertising with respect to changes in some important parameters of the problem. In...

This paper considers the problems of a dynamic continuous thief, such as a habitual shoplifter or a gas siphoner, who must choose the pilfering rate (which increases the probability of his arrest over time) to maximize the present value of his total expected gain over a given finite or infinite...

We derive a sharp upper bound on the minimal forecast horizon in the discounted dynamic lot size model with constant initial demand. This bound is given by m(m 1), where m is the EOQ's worth, i.e., the number of periods for which the total demand equals Economic Order Quantity. Our results do...

This paper develops efficient forward algorithms and planning horizon results for several machine replacement models under an improving technological environment over time. The models are that of cost minimization, profit maximization, and cost minimization with probabilistic breakdowns. The...

A quadratic model for production-inventory planning was made famous by Holt, Modigliani, Muth, and Simon in 1960 in [3], especially for its application to a paint factory. A discrete control version of a related quadratic production-inventory model was studied by Kleindorfer, Kriebel, Thompson,...

This note formulates an assignment problem for obtaining optimal level schedules for mixed-model assembly lines in JIT production systems. The problem was formulated as a quadratic integer programming problem in a recent paper by Miltenburg (1989) where, however, only enumerative algorithms and...

This paper develops efficient forward algorithms and planning horizon results for several machine replacement models under an improving technological environment over time. The models are that of cost minimization, profit maximization, and cost minimization with probabilistic breakdowns. The...

A study of water resources development in South Sweden revealed that water consumption unexpectedly stopped growing after construction had begun on a large project to expand water supplies. The project had a long lead time for completion, and planning had been based on traditional deterministic...