Accession Number : AD0664821

Title :   A MULTI-PRODUCT, DYNAMIC, NONSTATIONARY INVENTORY PROBLEM.

Descriptive Note : Technical rept.,

Corporate Author : STANFORD UNIV CALIF DEPT OF INDUSTRIAL ENGINEERING

Personal Author(s) : Veinott,Arthur F. , Jr

Report Date : 10 SEP 1964

Pagination or Media Count : 34

Abstract : The paper is concerned with a multi-product dynamic nonstationary inventory problem in which the system is reviewed at the beginning of each of a sequence of periods of equal length. The model has the following features. There is a general demand process with no stationarity or independence assumptions, partial or complete backlogging of unfilled demand, a fixed nonnegative delivery lag (which may be positive only under complete backlogging), a nonstationary linear ordering cost, a nonstationary holding and shortage cost function, discounting of future costs, and nonstationary restrictions like budget and storage limitations. The objective is to choose an ordering policy that minimizes the expected discounted costs over an infinite time horizon. Conditions are given that ensure that the base stock ordering policy is optimal and that the base stock levels in each period are easy to calculate. (Author)

Descriptors :   (*INVENTORY CONTROL, MATHEMATICAL MODELS), DECISION MAKING, INVENTORY CONTROL, NAVAL RESEARCH, OPERATIONS RESEARCH, STOCHASTIC PROCESSES, COSTS, OPTIMIZATION, MANAGEMENT PLANNING AND CONTROL, PROCUREMENT, THEOREMS

Subject Categories : Operations Research
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE