Chapter 1 AVERAGE COST OPTIMALITY IN INVENTORY MODELS WITH MARKO- VIAN DEMANDS AND LOST SALES∗
نویسندگان
چکیده
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.
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