Optimality of (s , S ) Inventory Policies under Renewal Demand and General Cost Structures

Optimality of (s, S) Policies in Inventory Models with Markovian Demand

This paper is concerned with a generalization of classical inventory models (with xed 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 stor...

Optimality Inequalities for Average Cost Markov Decision Processes and the Optimality of (s, S) Policies

For general state and action space Markov decision processes, we present sufficient conditions for convergence of both the optimal discounted cost value function and policies to the corresponding objects for the average costs per unit time. We extend Schäl’s [24] assumptions, guaranteeing the existence of a solution to the average cost optimality inequalities for compact action sets, to non-com...

Optimality of State-dependent (s; S ) Policies in Inventory Models with Markov-modulated Demand and Lost Sales

Markov-modulated processes have been used in stochastic inventory models with setup costs for modeling demand under the innuence of uncertain environmental factors, such as uctuat-ing economic and marketing conditions. The analyses of these models have been carried out in the literature only under the assumption that unsatissed demand is fully backlogged. We study a Markovian demand model in th...

Electronic Companion — “ Inventory Management with Auctions and Other Sales Channels : Optimality of ( s , S ) Policies ” by

Inventory Management with Auctions and Other Sales Channels: Optimality of (s, S) Policies

We study periodic-review inventory replenishment problems with fixed ordering costs, and show the optimality of (s, S) inventory replenishment policies. We consider several sales mechanisms, e.g., auction mechanisms, name-your-own-price mechanisms, and multiple heterogeneous sales channels. We prove this result by showing that these models satisfy a condition given by Huh and Janakiraman (2004)...