In ergodic singular stochastic control problems, a decision-maker can instantaneously adjust the evolution of a state variable using a control of bounded variation, with the goal of minimizing a long-term average cost functional. The cost of control is proportional to the magnitude of...

Background: The management of inventory under realistic supply chain disruptions, which are often non-exponential, challenges classical control theory. This study addresses the critical question of whether the optimality of simple base-stock policies holds under the combined influence of...