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