Discrete-time inventory models with deteriorating items

The discrete-time inventory control problem for deteriorating items with deterministic or stochastic demand is considered. The control problem is stated as an optimization problem with constrained control variables. The linear quadratic criterion is used to derive the optimal control policy for both deterministic and stochastic demand cases. In the presence of bounded uncertainties, a guaranteed cost control law is also proposed. A numerical example is provided to show the usefulness of the theoretical results.