Average Cost Optimality in Inventory Models with Markovian Demands 1
نویسندگان
چکیده
This paper is concerned with long-run average cost minimization of a stochastic inventory problem with Markovian demand, xed ordering cost, and convex surplus cost. The states of the Markov chain represent di erent possible states of the environment. Using a vanishing discount approach, a dynamic programming equation and the corresponding veri cation theorem are established. Finally, the existence of an optimal state-dependent (s; S) policy is proved.
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Average Cost Optimality in Inventory Models with Markovian Demands: A Summary
This paper is concerned with long-run average cost minimization of a stochastic inventory problem with Markovian demand, xed ordering cost, and convex surplus cost. The states of the Markov chain represent diierent possible states of the environment. Using a vanishing discount approach, a dynamic programming equation and the corresponding veriication theorem are established. Finally, the existe...
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