Approximate solutions of a dynamic forecast-inventory model
Journal Article (Journal Article)
In this paper we consider a dynamic forecast-inventory model with forecast updates, based on the martingale model of forecast evolution. Two types of updates are considered, additive and multiplicative. The formulation of the model results in a dynamic program with multidimensional state space. We derive some characteristics of optimal policies and also develop a computational approach to obtain approximate solutions. The approach is based on simulation and function approximation. © 2006 INFORMS.
Full Text
Duke Authors
Cited Authors
- Iida, T; Zipkin, PH
Published Date
- October 9, 2006
Published In
Volume / Issue
- 8 / 4
Start / End Page
- 407 - 425
Electronic International Standard Serial Number (EISSN)
- 1526-5498
International Standard Serial Number (ISSN)
- 1523-4614
Digital Object Identifier (DOI)
- 10.1287/msom.1060.0116
Citation Source
- Scopus