| Article ID: | iaor200380 |
| Country: | United States |
| Volume: | 14 |
| Issue: | 4 |
| Start Page Number: | 317 |
| End Page Number: | 328 |
| Publication Date: | Oct 2001 |
| Journal: | Journal of Applied Mathematics and Stochastic Analysis |
| Authors: | Benkherouf Lakdere, Aggoun Lakhdar, Boumenir Amin |
| Keywords: | control processes |
In this paper, we propose a new continuous time stochastic inventory model for stock dependent demand items. We then formulate the problem of finding the optimal replenishment schedule that minimizes the total expected discounted costs over an infinite horizon as a Quasi-Variational Inequality (QVI) problem. The QVI is shown to have a unique solution under some conditions.