Abstract
Single-product inventory management model with both random and controllable demand and continuous input product flow with fixed uncontrolled rate under finite storage capacity is considered. We consider the stock level process as asymptotically diffusion process and obtain its stationary distribution. An application of the approximation to on/off inventory control is considered and simulation results are given.
This work is performed under the state order No. 1.511.2014/K of the Ministry of Education and Science of the Russian Federation.
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Kitaeva, A., Subbotina, V., Zmeev, O. (2014). Diffusion Appoximation in Inventory Management with Examples of Application. In: Dudin, A., Nazarov, A., Yakupov, R., Gortsev, A. (eds) Information Technologies and Mathematical Modelling. ITMM 2014. Communications in Computer and Information Science, vol 487. Springer, Cham. https://doi.org/10.1007/978-3-319-13671-4_23
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DOI: https://doi.org/10.1007/978-3-319-13671-4_23
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-13670-7
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