Accession Number : AD0650793

Title :   OPTIMAL CONTINUOUS REVIEW POLICIES FOR TWO PRODUCT INVENTORY SYSTEMS WITH JOINT SETUP COSTS.

Descriptive Note : Technical rept.,

Corporate Author : COLUMBIA UNIV NEW YORK OPERATIONS RESEARCH GROUP

Personal Author(s) : Ignall,Edward

Report Date : 15 DEC 1966

Pagination or Media Count : 27

Abstract : Minimum average cost ordering policies for continuously reviewed two product inventory systems with joint setup costs are sought. Disappointingly, the optimal policy, even in a simple symmetric case, is not always simple: For some values of cost and demand parameters, a policy that would be difficult to implement is optimal. Markov Renewal Programming is used to find the region in parameter space where a given policy is optimal.

Descriptors :   (*MANAGEMENT ENGINEERING, *INVENTORY), (*INVENTORY CONTROL, *COSTS), OPERATIONS RESEARCH, PROBABILITY, VALUE ENGINEERING, RANDOM VARIABLES, REPLACEMENT THEORY, STATISTICAL PROCESSES, INVENTORY ANALYSIS, MATHEMATICAL PROGRAMMING

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE