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Critical Number Policies for Inventory Models with Periodic Data

Publication ,  Journal Article
Zipkin, P
Published in: Management Science
January 1989

We consider an infinite-horizon in problem with stochastic demands where the data vary periodically. Karlin (Karlin, S. 1960a. Dynamic inventory policy with varying stochastic demands. Management Sci. 6 231–258; Karlin, S. 1960b. Optimal policy for dynamic inventory process with stochastic demands subject to seasonal variations. J. SIAM 8 611–629.) shows that a periodic critical-number policy is optimal and presents an algorithm for computing the critical numbers, assuming discounted costs. Here we develop an alternative, conceptually simpler approach to these problems. The results include a proof of the optimality of such policies for the average-cost case, and a qualitative description of the behavior of the optimal policy as “smoothing” fluctuations in the data.

Duke Scholars

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

January 1989

Volume

35

Issue

1

Start / End Page

71 / 80

Publisher

Institute for Operations Research and the Management Sciences (INFORMS)

Related Subject Headings

  • Operations Research
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences
 

Citation

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Zipkin, P. (1989). Critical Number Policies for Inventory Models with Periodic Data. Management Science, 35(1), 71–80. https://doi.org/10.1287/mnsc.35.1.71
Zipkin, Paul. “Critical Number Policies for Inventory Models with Periodic Data.” Management Science 35, no. 1 (January 1989): 71–80. https://doi.org/10.1287/mnsc.35.1.71.
Zipkin P. Critical Number Policies for Inventory Models with Periodic Data. Management Science. 1989 Jan;35(1):71–80.
Zipkin, Paul. “Critical Number Policies for Inventory Models with Periodic Data.” Management Science, vol. 35, no. 1, Institute for Operations Research and the Management Sciences (INFORMS), Jan. 1989, pp. 71–80. Crossref, doi:10.1287/mnsc.35.1.71.
Zipkin P. Critical Number Policies for Inventory Models with Periodic Data. Management Science. Institute for Operations Research and the Management Sciences (INFORMS); 1989 Jan;35(1):71–80.

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

January 1989

Volume

35

Issue

1

Start / End Page

71 / 80

Publisher

Institute for Operations Research and the Management Sciences (INFORMS)

Related Subject Headings

  • Operations Research
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences