Two Papers on Adaptive Inventory Control
Abstract
Two papers on adaptive inventory control are presented. The first uses process control techniques to obtain an optimal policy for an inventory problem in which orders are placed at the start of each of an infinite number of intervals. The cost of ordering is C and is balanced against a cost proportional to the square of the on-hand inventory (or shortage). Delivery lead time is T units. The second paper considers a similar multiperiod problem in which there is a holding cost and shortage cost. The inventory procedure is adaptive in that Bayesian procedures are used with the accumulated demand data to estimate the unknown parameters of the demand distribution.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1968
- Accession Number
- AD0666574
Entities
People
- Robert Glier