| Author: | Chao, H. P. |
| Title: | Inventory policy in the presence of market disruptions. |
| Journal: | Operations Research
1987 : MAR-APR, VOL. 35:2, p. 274-281 |
| Index terms: | MARKOV CHAINS INVENTORY CONTROL |
| Language: | eng |
| Abstract: | A dynamic model is presented concerning optimal invertory policies in the presence of market distributions, which are often characterized by events with uncertain arrival time, severity and duration. The model is based on the framework of a continuous-time Markow decision process with a finite state space. A general characterization of the optimal inventory policy is developed, and interpreted in economic terms, and then applied to two special cases, yielding explicit analytic results. |
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