Optimality of State - Dependent ( s ; S ) Policies in InventoryModels with Markov - Modulated Demand and Lost
نویسندگان
چکیده
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 uctuating economic and market conditions. The analyses of these models have been carried out in the literature only under the assumption that unsatissed 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 of Sethi and Cheng (1997) to analyze the lost sales case; in particular, we establish the optimality of an (s; S)-type policy under fairly general conditions.
منابع مشابه
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...
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