Scheduled System Maintenance:
Some services will be unavailable Sunday, March 29th through Monday, March 30th. We apologize for the inconvenience.
By Topic

Average Cost Optimality in Inventory Models With Dynamic Information Delays

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

5 Author(s)
Bensoussan, A. ; Sch. of Manage., Univ. of Texas at Dallas, Richardson, TX, USA ; Cakanyildirim, M. ; Sethi, S.P. ; Mingzheng Wang
more authors

Information delays exist when the most recent inventory information available to the Inventory Manager (IM) is dated. In other words, the IM observes only the inventory level that belongs to an earlier period. Such situations are not uncommon, and they arise when it takes a while to process the demand data and pass the results to the IM. In this paper, we establish that the average cost optimal policy is of state-dependent basestock type with respect to the reference inventory position. We show that the optimal base stock depends on the age and the magnitude of the latest observed delay. We illustrate the results by solving an example with delays of 0 and 1, for which we are able to obtain formulas/bounds for the basestock levels.

Published in:

Automatic Control, IEEE Transactions on  (Volume:56 ,  Issue: 12 )