| Article ID: | iaor19911209 |
| Country: | Netherlands |
| Volume: | 19 |
| Issue: | 1/3 |
| Start Page Number: | 189 |
| End Page Number: | 195 |
| Publication Date: | May 1990 |
| Journal: | Engineering Costs and Production Economics |
| Authors: | Rempala Ryszarda . |
In this paper an inventory model with convex, non-decreasing costs, exogeneous demand and spoilage is considered. The explicit forecast and decision horizons are obtained. The horizon problem is formulated as an optimal control problem. The essential ingredient in the proof is a version of the Pontryagin maximum principle.