Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/65893
Title: Optimality of (s; S) policies with nonlinear processes
Authors: Liu, J
Yiu, KFC
Bensoussan, A
Keywords: (s,S) policy
Inventory control
Nonlinear mean-reverting process
Issue Date: 2017
Publisher: American Institute of Mathematical Sciences
Source: Discrete and continuous dynamical systems. Series B, 2017, v. 22, no. 1, p. 161-185 How to cite?
Journal: Discrete and continuous dynamical systems. Series B 
Abstract: It is observed empirically that mean-reverting processes are more realistic in modeling the inventory level of a company. In a typical mean- reverting process, the inventory level is assumed to be linearly dependent on the deviation of the inventory level from the long-term mean. However, when the deviation is large, it is reasonable to assume that the company might want to increase the intensity of interference to the inventory level significantly rather than in a linear manner. In this paper, we attempt to model inventory replenishment as a nonlinear continuous feedback process. We study both infinite horizon discounted cost and the long-run average cost, and derive the corresponding optimal (s; S) policy.
URI: http://hdl.handle.net/10397/65893
ISSN: 1531-3492
EISSN: 1553-524X
DOI: 10.3934/dcdsb.2017008
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

Page view(s)

10
Last Week
0
Last month
Checked on Sep 18, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.