Article ID: | iaor20062429 |
Country: | United Kingdom |
Volume: | 24 |
Issue: | 6 |
Start Page Number: | 315 |
End Page Number: | 330 |
Publication Date: | Nov 2003 |
Journal: | Optimal Control Applications & Methods |
Authors: | Papachristos S., Skouri K. |
Keywords: | control processes |
In the paper we present four inventory control models under the following assumptions. Planning horizon is finite and demand is a general logconcave function of time. The models allow for deterioration of items over time and shortages partially backlogged at an exponential rate. For each of the models we establish the existence of a unique optimal policy. We then compute their optimal costs and rank them according to cost performance. This ranking indicates that model four gives the lowest cost. Numerical examples are given to support the theoretical findings and explain the application of procedures.