A stochastic inventory model with stock dependent demand items. (2001)

• Record Type: Journal Article
• Authors: Benkherouf, Lakdere; Boumenir, Amin; Aggoun, Lakhdar
• Is Part Of: Journal of applied mathematics and stochastic analysis. Volume 14:Number 4(2001)
• Page Start: 317
• Page End: 328
• Publication Date: 2001
• Subjects: inventory control -- impulse control -- quasi-variational inequality; Mathematical models -- Periodicals; Computer simulation -- Periodicals; Computer science -- Mathematics -- Periodicals; Computer science -- Mathematics; Computer simulation; Mathematical models; Applied Mathematics; Periodicals; Electronic journals; 519.22
• DOI: 10.1155/S1048953301000284
• Languages: English
• ISSNs: 1048-9533

Abstract

Abstract : In this paper, we propose a new continuous time stochastic inventory model for stock dependent demand items. We then formulate the problem of finding the optimal replenishment schedule that minimizes the total expected discounted costs over an infinite horizon as a Quasi-Variational Inequality (QVI) problem. The QVI is shown to have a unique solution under some conditions.