A MARKOVIAN DECISION MODEL FOR A JOINT REPLACEMENT AND STOCKING PROBLEM.
STANFORD UNIV CALIF DEPT OF STATISTICS
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Two important classes of problems encountered by industry and government are those dealing with replacement policies and ordering policies. These problems are usually treated separately. A particular model which treats the replacement and stocking problems as one is considered in this report. It is formulated as a denumerable state Markovian decision model. It is shown that the optimal decision policy has a particular structure. In attaining the optimal policy, this structure is exploited so that an optimal policy can be obtained in a finite number of steps. Author
- Administration and Management
- Operations Research