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Numerical aspects in Bayesian inventory control

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Summary

We consider a discrete review single product dynamic inventory model with incompletely known distribution of demand from the Bayesian point of view. We derive bounds for the optimal order points and order quantities of so-called (z, Z)-order-policies and construct nearly optimal (z, Z)-order-policies easy to compute.

Zusammenfassung

Es wird ein diskretes dynamisches Ein-Produkt-Lagerhaltungsmodell mit unbekannter Nachfrageverteilung vom Bayesschen Standpunkt betrachtet. In der Menge der sog. (z, Z)-Bestellpolitiken werden Schranken für die optimalen Bestellpunkte und Bestellmengen hergeleitet. Außerdem werden „gute” (z, Z)-Bestellpolitiken konstruiert, die leicht zu berechnen sind.

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Authors and Affiliations

  1. Fachbereich Mathematik, TH Darmstadt, Schloßgartenstr. 7, D-6100, Darmstadt

    K. -H. Waldmann

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  1. K. -H. Waldmann
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Waldmann, K.H. Numerical aspects in Bayesian inventory control. Zeitschrift für Operations Research 23, 49–60 (1979). https://doi.org/10.1007/BF01917334

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  • DOI: https://doi.org/10.1007/BF01917334

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