Infinite Horizon Optimal Policy for an Inventory System
نویسندگان
چکیده
In this paper, 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 profit for the model is analytically obtained and proved to be an order-up-to policy. Results are also provided that elucidate the operations of the inventory system in the long run. This inventory system is first discussed in Chou, Sim and Yuan [3], where optimal policies for single period and finite horizon scenarios are obtained.
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