| Article ID: | iaor19992189 |
| Country: | Germany |
| Volume: | 47 |
| Issue: | 3 |
| Start Page Number: | 451 |
| End Page Number: | 471 |
| Publication Date: | Jan 1998 |
| Journal: | Mathematical Methods of Operations Research (Heidelberg) |
| Authors: | Montes-de-Oca R., Vega-Amaya O. |
| Keywords: | programming: dynamic |
We show the existence of average cost (AC-) optimal policy for an inventory system with uncountable state space; in fact, the AC-optimal cost and an AC-optimal stationary policy are explicitly computed. In order to do this, we use a variant of the vanishing discount factor approach, which has been intensively studied in recent years but the available results did not cover the inventory problem we are interested in.