Optimality of State-dependent (s; S ) Policies in Inventory Models with Markov-modulated Demand and Lost Sales
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 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 the case when unsatissed demands are lost. The lost sales situation occurs in many retail establishments such as department stores and supermarkets. The optimality of an (s; S)-type policy is established under fairly general conditions. Computational results are also reported.
منابع مشابه
Optimality of State - Dependent ( s ; S ) Policies in InventoryModels with Markov - Modulated Demand and Lost
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 ret...
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