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INVENTORY MODEL WITH LIMITED PRODUCTION CAPACITY AND UNCERTAIN DEMANDS I. THE AVERAGE-COST CRITERION.

Publication ,  Journal Article
Federgruen, A; Zipkin, P
Published in: Mathematics of Operations Research
1986

This paper considers a single-item, periodic-review inventory model with uncertain demands. In contrast to prior treatments of this problem we assume a finite production capacity per period. Assuming stationary data, a convex one-period cost function and a discrete demand distribution, we show (under a few additional unrestrictive assumptions) that a modified base-stock policy is optimal under the average-cost criterion; in addition, we characterize the optimal base-stock level.

Duke Scholars

Published In

Mathematics of Operations Research

Publication Date

1986

Volume

11

Issue

2

Start / End Page

193 / 207

Related Subject Headings

  • Operations Research
  • 0802 Computation Theory and Mathematics
  • 0103 Numerical and Computational Mathematics
  • 0102 Applied Mathematics
 

Citation

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Federgruen, A., & Zipkin, P. (1986). INVENTORY MODEL WITH LIMITED PRODUCTION CAPACITY AND UNCERTAIN DEMANDS I. THE AVERAGE-COST CRITERION. Mathematics of Operations Research, 11(2), 193–207.
Federgruen, A., and P. Zipkin. “INVENTORY MODEL WITH LIMITED PRODUCTION CAPACITY AND UNCERTAIN DEMANDS I. THE AVERAGE-COST CRITERION.Mathematics of Operations Research 11, no. 2 (1986): 193–207.
Federgruen A, Zipkin P. INVENTORY MODEL WITH LIMITED PRODUCTION CAPACITY AND UNCERTAIN DEMANDS I. THE AVERAGE-COST CRITERION. Mathematics of Operations Research. 1986;11(2):193–207.
Federgruen, A., and P. Zipkin. “INVENTORY MODEL WITH LIMITED PRODUCTION CAPACITY AND UNCERTAIN DEMANDS I. THE AVERAGE-COST CRITERION.Mathematics of Operations Research, vol. 11, no. 2, 1986, pp. 193–207.
Federgruen A, Zipkin P. INVENTORY MODEL WITH LIMITED PRODUCTION CAPACITY AND UNCERTAIN DEMANDS I. THE AVERAGE-COST CRITERION. Mathematics of Operations Research. 1986;11(2):193–207.

Published In

Mathematics of Operations Research

Publication Date

1986

Volume

11

Issue

2

Start / End Page

193 / 207

Related Subject Headings

  • Operations Research
  • 0802 Computation Theory and Mathematics
  • 0103 Numerical and Computational Mathematics
  • 0102 Applied Mathematics