INVENTORY PLANNING IN A DETERMINISTIC ENVIRONMENT : CONCAVE COST SET-UP.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)22_Publication in policy or professional journal

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Original languageEnglish
Pages (from-to)177-184
Journal / PublicationLarge Scale Systems
Volume6
Issue number2
Publication statusPublished - Apr 1984

Abstract

The purpose of this paper is to present an original approach to the dynamic inventory planning problem in discrete time with concave costs, under (1) the general assumption of non-stationary and (2) with any non-negative initial inventory. We show, using the backward dynamic programming equations, that the optimal cost is a piecewise concave function of the initial inventory. This property leads to a first simplification of the backward dynamic programming equations. We then consider the infinite horizon problem. We prove that, under a very general assumption, it is possible to obtain a solution close to the optimal one. Furthermore, we point out that the optimal cost is a piecewise concave function of the initial inventory, as in the case of the finite horizon.

Citation Format(s)

INVENTORY PLANNING IN A DETERMINISTIC ENVIRONMENT : CONCAVE COST SET-UP. / Bensoussan, Alain; Proth, Jean Marie.

In: Large Scale Systems, Vol. 6, No. 2, 04.1984, p. 177-184.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)22_Publication in policy or professional journal