Accession Number : AD0666574

Title :   TWO PAPERS ON ADAPTIVE INVENTORY CONTROL.

Descriptive Note : Technical rept.,

Corporate Author : DECISION STUDIES GROUP PALO ALTO CALIF

Personal Author(s) : Glier,Robert

Report Date : JAN 1968

Pagination or Media Count : 25

Abstract : Two papers on adaptive inventory control are presented. The first uses process control techniques to obtain an optimal policy for an inventory problem in which orders are placed at the start of each of an infinite number of intervals. The cost of ordering is C and is balanced against a cost proportional to the square of the on-hand inventory (or shortage). Delivery lead time is T units. The second paper considers a similar multiperiod problem in which there is a holding cost and shortage cost. The inventory procedure is adaptive in that Bayesian procedures are used with the accumulated demand data to estimate the unknown parameters of the demand distribution. (Author)

Descriptors :   (*INVENTORY CONTROL, ADAPTIVE SYSTEMS), (*DYNAMIC PROGRAMMING, INVENTORY CONTROL), OPTIMIZATION, COSTS, RANDOM VARIABLES, SAMPLING, MATHEMATICAL PREDICTION, INVENTORY CONTROL, STOCHASTIC PROCESSES, DECISION THEORY

Subject Categories : Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE