In this paper, we consider a stochastic inventory system of two products where a fi xed proportion of the unsatisfied ed demand for one product purchases the other product as a substitute. We formulate the optimal inventory control problem as a dynamic program; and by developing two key...

Using a statistical approach, widespread in natural sciences, a two-level model to control the parameters of the flow line production system has been built. The state of the system is given by the amounts of sets of the objects of labour. The state of the subject of labour is given by a point in...

The Least-Squares Monte Carlo method has gained popularity recent years due to its ability to handle multi-dimensional stochastic control problems without restrictions on the state dynamics, including problems with state variables affected by control. However, when applied to stochastic control...