Optimality Of State Dependent S S Policies In Inventory Models With Markov Modulated Demand And Lost Sales PDF Download
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Author | : Feng Cheng |
Publisher | : |
Total Pages | : 0 |
Release | : 2009 |
Genre | : |
ISBN | : |
Download Optimality of State-Dependent (s, S) Policies in Inventory Models with Markov-Modulated Demand and Lost Sales Book in PDF, ePub and Kindle
Markov-modulated processes have been used in stochastic inventory models with setup costs for modeling demand under the influence of uncertain environmental factors, such as fluctuating economic and market conditions. The analyses of these models have been carried out in the literature only under the assumption that unsatisfied demand is fully backlogged. The lost sales situation occurs in many retail establishments such as department stores and supermarkets. We use the analysis of the Markovian demand model with backlogging to analyze the lost sales case; in particular, we establish the optimality of an (s, S)-type policy under fairly general conditions.
Author | : Suresh Sethi |
Publisher | : |
Total Pages | : 0 |
Release | : 2014 |
Genre | : |
ISBN | : |
Download Optimality of (s, S) Policies in Inventory Models with Markovian Demand Book in PDF, ePub and Kindle
This paper is concerned with a generalization of classical inventory models (with fixed ordering costs) that exhibit (s, S) policies. In our model, the distribution of demands in successive periods is dependent on a Markov chain. The model includes the case of cyclic or seasonal demand. The model is further extended to incorporate some other realistic features such as no ordering periods and storage and service level constraints. Both finite and infinite horizon nonstationary problems are considered. We show that (s, S) policies are also optimal for the generalized model as well as its extensions.
Author | : Dirk Beyer |
Publisher | : Springer Science & Business Media |
Total Pages | : 260 |
Release | : 2009-10-03 |
Genre | : Business & Economics |
ISBN | : 0387716041 |
Download Markovian Demand Inventory Models Book in PDF, ePub and Kindle
This text provides a superbly researched insight into Markovian demand inventory models. The result of ten years of research, this work covers all aspects of demand inventory where they are modeled by Markov processes. Inventory management is concerned with matching supply with demand and is a central problem in Operations Management. The central problem is to find the amount to be produced or purchased in order to maximize the total expected profit, or minimize the total expected cost.
Author | : Dirk Beyer |
Publisher | : |
Total Pages | : 19 |
Release | : 2014 |
Genre | : |
ISBN | : |
Download Average Cost Optimality in Inventory Models with Markovian Demands and Lost Sales Book in PDF, ePub and Kindle
This paper is concerned with long-run average cost minimization of a stochastic inventory problem with Markovian demand, fixed ordering cost, convex surplus cost, and lost sales. The states of the Markov chain represent different possible states of the environment. Using a vanishing discount approach, a dynamic programming equation and the corresponding verification theorem are established. Finally, the existence of an optimal state-dependent (s; S) policy is proved.
Author | : Willem van Jaarsveld |
Publisher | : |
Total Pages | : 14 |
Release | : 2009 |
Genre | : |
ISBN | : |
Download Finding Optimal Policies in the (S - 1, S) Lost Sales Inventory Model with Multiple Demand Classes Book in PDF, ePub and Kindle
Author | : Karin Möllering |
Publisher | : Kölner Wissenschaftsverlag |
Total Pages | : 196 |
Release | : 2007 |
Genre | : |
ISBN | : 3937404341 |
Download Inventory Rationing Book in PDF, ePub and Kindle
Author | : Donald L. Iglehart |
Publisher | : |
Total Pages | : 22 |
Release | : 1968 |
Genre | : |
ISBN | : |
Download Optimal Policies Under the Shortage Probability Criterion for an Inventory Model with Unknown Dependent Demand Book in PDF, ePub and Kindle
This report considers inventory models with a new objective function and a model with incompletely known demands which depend on the state of the inventory. The shortage probability criterion is defined, and the form of optimal policies under this new criterion is proved. Optimal policies are obtained for a particular model with unknown binomial demands when Bayesian estimation methods are used. The object of the shortage probability criterion is to minimize the order costs subject to the restriction that the probability that inventory falls below a given level not to exceed a given value. Inventory models with state dependent and independent demands and with various delivery lags are considered, and the optimal ordering policy in all cases is shown to be a myopic single critical level policy. A Bayesian estimation procedure is developed for a model with binomially distributed demands where the parameter p is unknown. The Bayesian estimate is incorporated into a myopic policy which is shown to be optimal. (Author).
Author | : Christina Kær Eriksen |
Publisher | : |
Total Pages | : 37 |
Release | : 2014 |
Genre | : |
ISBN | : |
Download Markov Decision Theory Book in PDF, ePub and Kindle
Author | : Mahesh Nagarajan |
Publisher | : |
Total Pages | : 0 |
Release | : 2009 |
Genre | : |
ISBN | : |
Download Inventory Models for Substitutable Products Book in PDF, ePub and Kindle
In this paper, we examine the nature of optimal inventory policies in a system where a retailer manages substitutable products. We first consider a system with two products 1 and 2 whose total demand is D and individual demands are negatively correlated. A fixed proportion of the unsatisfied customers for an item will purchase the other item, if it is available in inventory. For the single period case, we show that the optimal inventory levels of the two items can be computed easily and follow what we refer to as "partially decoupled" policies, i.e. base stock policies that are not state dependent, in certain critical regions of interest both when D is known and random. Furthermore, we show that such a partially decoupled base-stock policy is optimal even in a multi-period version of the problem for known D for a wide range of parameter values and in an N-product single-period model under some restrictive conditions. Using a numerical study, we show that heuristics based on the de-coupled inventory policy perform well in conditions more general than the ones assumed to obtain the analytical results. The analytical and numerical results suggest that the approach presented here is most valuable in retail settings for product categories where the level of substitution between items in a category is not high, demand variation at the aggregate level is not high and service levels or newsvendor ratios are high.
Author | : Youhua Chen |
Publisher | : |
Total Pages | : |
Release | : 2013 |
Genre | : |
ISBN | : |
Download Optimal Inventory Control Policy for Periodic-Review Inventory Systems with Inventory-Level-Dependent Demand Book in PDF, ePub and Kindle
We consider a setting in which inventory plays both promotional and service roles; that is, higher inventories not only improve service levels but also stimulate demand by serving as a promotional tool (e.g., as the result of advertising effect by the enhanced product visibility). Specifically, we study the periodic-review inventory systems in which the demand in each period is uncertain but increases with the inventory level. We investigate the multiperiod model with normal and expediting orders in each period, that is, any shortage will be met through emergency replenishment. Such a model takes the lost sales model as a special case. For the cases without and with fixed order costs, the optimal inventory replenishment policy is shown to be of the base-stock type and of the (s, S) type, respectively.