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A diffusion inventory model for deteriorating items
This paper is concerned with finding the optimal impulse control schedule for a stochastic inventory model for deteriorating items that minimizes the total expected discounted cost over an infinite horizon. It turns out that the optimal impulse control policy can be found as a solution of a Quasi-Va...
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Published in: | Applied mathematics and computation 2003-06, Vol.138 (1), p.21-39 |
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Main Authors: | , , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
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Summary: | This paper is concerned with finding the optimal impulse control schedule for a stochastic inventory model for deteriorating items that minimizes the total expected discounted cost over an infinite horizon. It turns out that the optimal impulse control policy can be found as a solution of a Quasi-Variational Inequality (QVI) problem of which details are provided. Further, the problem of finding the optimal impulse control policy that minimizes the total expected costs per unit time is addressed. |
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ISSN: | 0096-3003 1873-5649 |
DOI: | 10.1016/S0096-3003(02)00097-8 |