Article ID: | iaor20071098 |
Country: | United States |
Volume: | 15 |
Issue: | 2 |
Start Page Number: | 279 |
End Page Number: | 293 |
Publication Date: | Jan 2006 |
Journal: | Production and Operations Management |
Authors: | Sethi Suresh P., Presman Ernst |
Keywords: | economic order |
We develop a new, unified approach to treating continuous-time stochastic inventory problems with both the average and discounted cost criteria. The approach involves the development of an adjusted discounted cycle cost formula, which has an appealing intuitive interpretation. We show for the first time that an