Article ID: | iaor20013211 |
Country: | United States |
Volume: | 5 |
Issue: | 1 |
Start Page Number: | 47 |
End Page Number: | 59 |
Publication Date: | Mar 2001 |
Journal: | Journal of Applied Mathematics & Decision Sciences |
Authors: | Ben-Ayed Omar |
Keywords: | programming: dynamic, markov processes |
Operations Research techniques are usually presented as distinct models. Difficult as it may often be, achieving linkage between these models could reveal their interdependency and make them easier for the user to understand. In this article three different models, namely Markov Chain, Dynamic Programming, and Markov Sequential Decision Processes, are used to solve an inventory problem based on the periodic review system. We show how the three models converge to the same (s, S) policy and we provide a numerical example to illustrate such a convergence.