Accession Number : AD0639720

Title :   A MARKOVIAN DECISION MODEL FOR A JOINT REPLACEMENT AND STOCKING PROBLEM.

Descriptive Note : Technical rept.,

Corporate Author : STANFORD UNIV CALIF DEPT OF STATISTICS

Personal Author(s) : Derman,Cyrus ; lieberman,Gerald J.

Report Date : 09 SEP 1966

Pagination or Media Count : 22

Abstract : Two important classes of problems encountered by industry and government are those dealing with replacement policies and ordering policies. These problems are usually treated separately. A particular model which treats the replacement and stocking problems as one is considered in this report. It is formulated as a denumerable state Markovian decision model. It is shown that the optimal decision policy has a particular structure. In attaining the optimal policy, this structure is exploited so that an optimal policy can be obtained in a finite number of steps. (Author)

Descriptors :   (*INVENTORY CONTROL, *MATHEMATICAL MODELS), REPLACEMENT THEORY, INVENTORY CONTROL, STATISTICAL ANALYSIS, OPTIMIZATION

Subject Categories : Administration and Management
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE