A comparative study of stochastic economic order quantity models with discounting

In the literature of inventory control, two types of Gaussian process are often used as demand processes. One is the Wiener process with drift, the other is the Wiener process reflecting at the origin. The purpose of this paper is to compare the results of these assumptions in the context of the classical EOQ model, and to examine the numerical properties of the optimal order quantities minimizing expected cost criteria for various model parameters. As a result, it is shown that the impacts of uncertainty in the case of the reflecting demand process are even more striking than those in the case of the ordinary Wiener process.