OPTIMAL CONTINUOUS REVIEW POLICIES FOR TWO PRODUCT INVENTORY SYSTEMS WITH JOINT SETUP COSTS.
COLUMBIA UNIV NEW YORK OPERATIONS RESEARCH GROUP
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Minimum average cost ordering policies for continuously reviewed two product inventory systems with joint setup costs are sought. Disappointingly, the optimal policy, even in a simple symmetric case, is not always simple For some values of cost and demand parameters, a policy that would be difficult to implement is optimal. Markov Renewal Programming is used to find the region in parameter space where a given policy is optimal.
- Administration and Management
- Economics and Cost Analysis
- Operations Research