In this paper we consider a dynamic forecast-inventory model with forecast updates, based on the martingale model of forecast evolution. Two types of updates are considered, additive and multiplicative. The formulation of the model results in a dynamic program with multidimensional state space....

We consider an infinite-horizon in problem with stochastic demands where the data vary periodically. Karlin (Karlin, S. 1960a. Dynamic inventory policy with varying stochastic demands. Management Sci. 6 231--258; Karlin, S. 1960b. Optimal policy for dynamic inventory process with stochastic demands...

We study a basic continuous-time single-item inventory model where demands form a compound Poisson process and leadtimes are stochastic. The performance measure of interest is the long-run average cost. Order costs are linear, so a base-stock policy is optimal. We focus on the behavior of the...