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Markovian Demand Inventory Models

Markovian Demand Inventory Models

Hardcover

Series: International Operations Research & Management Science, Book 108

Business GeneralGeneral MathematicsProbability & Statistics

ISBN10: 0387716033
ISBN13: 9780387716039
Publisher: Springer
Published: Oct 16 2009
Pages: 255
Weight: 1.24
Height: 0.69 Width: 6.14 Depth: 9.21
Language: English

Inventory management is concerned with matching supply with demand and a central problem in Operations Management. The problem is to find the amount to be produced or purchased in order to maximize the total expected profit or minimize the total expected cost. Over the past two decades, several variations of the formula appeared, mostly in trade journals written by and for inventory managers. A critical assumption in the inventory literature is that the demands in different periods are independent and identically distributed. However, in real life, demands may depend on environmental considerations or the events in the world such as the weather, the state of economy, etc. Moreover, these events are represented by stochastic processes - exogenous or controlled.

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