(s,S)-type policy for a production inventory problem with limited backlogging and with stockouts

Tom 24 / 1997

Ryszarda Rempała Applicationes Mathematicae 24 (1997), 343-354 DOI: 10.4064/am-24-3-343-354

Streszczenie

A production inventory problem with limited backlogging and with stockouts is described in a discrete time, stochastic optimal control framework with finite horizon. It is proved by dynamic programming methods that an optimal policy is of (s,S)-type. This means that in every period the policy is completely determined by two fixed levels of the stochastic inventory process considered.

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  • Ryszarda Rempała

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