AN ASYMPTOTIC STUDY OF A STATIONARY (SIGMA-S) INVENTORY PROBLEM.
Abstract
In a multi-commodity periodic review inventory system with proportional costs plus a single set-up cost, the stationary characteristics of the system are studied when demands for each commodity in each period are exponentially and independently distributed and a class of (Sigma-S) policy is followed. The cost structure of the problem is analyzed and explicit analytic solutions are obtained for the optimal values of the decision variables when the order quantities are large. It is also shown that when the number of commodities becomes large, the problem can be decomposed in such a way that each commodity can be treated independently as if operating under an 'order up to' policy. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1968
- Accession Number
- AD0683297
Entities
People
- B. D. Sivazlian
Organizations
- University of Florida