Optimal Continuous Review Policies for Two Product Inventory Systems with Joint Setup Costs

Minimum average cost ordering policies for continuously reviewed two product inventory systems with joint setup costs are sought. Disappointly, 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.

MoreLess

Year of publication:	1969
Authors:	Ignall, Edward
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 15.1969, 5, p. 278-283
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS

More details

Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.15.5.278 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009196589