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 distribution of the random demand in that period. Optimal inventory and … show that there is a threshold inventory level P for each demand state such that if the threshold is exceeded, then it is …

appealing intuitive interpretation. We show for the first time that an (s, S) policy is optimal in the case of demand having a … compound Poisson component as well as a constant rate component. Our demand structure simultaneously generalizes the classical … EOQ model and the inventory models with Poisson demand, and we indicate the reasons why this task has been a difficult one …

, and regular demand forecast updates. At the beginning of each period, on-hand inventory and demand information are updated …

includes the case of cyclic or seasonal demand. The model is further extended to incorporate some other realistic features such …

, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are …

acquisition, and forwards the orders to the supplier. The retailer usually has better customer demand information, and may send an … over-estimated demand forecast to maximize her own interest, which may result in overstock for the supplier. On the other …-penalty contracts that can provide greater certainty of demand as well as greater certainty of supply. We focus our study in the …