Infinite horizon optimal policy for an inventory system with two types of product sharing common hardware platforms

Mabel C. Chou; Chee Khian Sim; Xue-Ming Yuan

doi:10.1016/j.orl.2016.10.009

Infinite horizon optimal policy for an inventory system with two types of product sharing common hardware platforms

Mabel C. Chou, Chee Khian Sim, Xue-Ming Yuan

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Abstract

We consider a periodic review inventory system and present its optimal policy in
the infinite horizon setting. The optimal inventory policy that maximizes the infinite
horizon expected discounted prot for the model is analytically obtained by relating to the finite horizon setting using results from variational analysis. Results are provided that elucidate the operations of the inventory system in the long run.

Original language	English
Pages (from-to)	12-18
Number of pages	7
Journal	Operations Research Letters
Volume	45
Issue number	1
Early online date	3 Nov 2016
DOIs	https://doi.org/10.1016/j.orl.2016.10.009
Publication status	Published - 2 Jan 2017

Keywords

dynamic programming
inventory control
lateral transshipment
optimal policy
variational analysis

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10.1016/j.orl.2016.10.009

infinitehorizon_acceptedAccepted author manuscript (Post-print), 265 KBLicence: CC BY-NC-ND

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abstract = "We consider a periodic review inventory system and present its optimal policy inthe infinite horizon setting. The optimal inventory policy that maximizes the infinite horizon expected discounted prot for the model is analytically obtained by relating to the finite horizon setting using results from variational analysis. Results are provided that elucidate the operations of the inventory system in the long run.",

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AU - Chou, Mabel C.

AU - Sim, Chee Khian

AU - Yuan, Xue-Ming

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N2 - We consider a periodic review inventory system and present its optimal policy inthe infinite horizon setting. The optimal inventory policy that maximizes the infinite horizon expected discounted prot for the model is analytically obtained by relating to the finite horizon setting using results from variational analysis. Results are provided that elucidate the operations of the inventory system in the long run.

AB - We consider a periodic review inventory system and present its optimal policy inthe infinite horizon setting. The optimal inventory policy that maximizes the infinite horizon expected discounted prot for the model is analytically obtained by relating to the finite horizon setting using results from variational analysis. Results are provided that elucidate the operations of the inventory system in the long run.

KW - dynamic programming

KW - inventory control

KW - lateral transshipment

KW - optimal policy

KW - variational analysis

U2 - 10.1016/j.orl.2016.10.009

DO - 10.1016/j.orl.2016.10.009

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JO - Operations Research Letters

JF - Operations Research Letters

SN - 0167-6377

IS - 1

ER -

Infinite horizon optimal policy for an inventory system with two types of product sharing common hardware platforms

Abstract

Keywords

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