Cost-Effective Inventory Control Under Risk
Inventory systems play an important role in manufacturing and service providing organisations to support fluency of production or service. Evolution in time and environment of risk usually characterise operation of such systems. Proper control rules are required for decision making on replenishment...
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| Format: | Article |
| Language: | English |
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University of Žilina
2000-12-01
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| Series: | Communications |
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| Online Access: | https://komunikacie.uniza.sk/artkey/csl-200004-0003_cost-effective-inventory-control-under-risk.php |
| _version_ | 1797847112931606528 |
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| author | Ondrej Bartl |
| author_facet | Ondrej Bartl |
| author_sort | Ondrej Bartl |
| collection | DOAJ |
| description | Inventory systems play an important role in manufacturing and service providing organisations to support fluency of production or service. Evolution in time and environment of risk usually characterise operation of such systems. Proper control rules are required for decision making on replenishment orders. If stochastic dynamics of system motion exhibits the Markovian property, then Markov decision models can be employed to reveal a cost-effective inventory control policy. A single-item periodic-review inventory system in the maintenance centre of amanufacturing or transportation organisation with aPoisson arrival stream of demand requirements for spare components is introduced in the paper. The corresponding discrete-time Markov decision model with finite state and action spaces is described for sequential decisions on order sizes over an infinite planning horizon. The long-run expected average cost per unit time is the criterion of interest to be minimised by an optimal inventory control policy. |
| first_indexed | 2024-04-09T18:05:54Z |
| format | Article |
| id | doaj.art-affa52b538bc45e4994f56a326726353 |
| institution | Directory Open Access Journal |
| issn | 1335-4205 2585-7878 |
| language | English |
| last_indexed | 2024-04-09T18:05:54Z |
| publishDate | 2000-12-01 |
| publisher | University of Žilina |
| record_format | Article |
| series | Communications |
| spelling | doaj.art-affa52b538bc45e4994f56a3267263532023-04-14T06:29:06ZengUniversity of ŽilinaCommunications1335-42052585-78782000-12-0124162810.26552/com.C.2000.4.16-28csl-200004-0003Cost-Effective Inventory Control Under RiskOndrej Bartl0Department of Special Technologies, Faculty of Management Science and Informatics, University of Žilina, Slovak RepublicInventory systems play an important role in manufacturing and service providing organisations to support fluency of production or service. Evolution in time and environment of risk usually characterise operation of such systems. Proper control rules are required for decision making on replenishment orders. If stochastic dynamics of system motion exhibits the Markovian property, then Markov decision models can be employed to reveal a cost-effective inventory control policy. A single-item periodic-review inventory system in the maintenance centre of amanufacturing or transportation organisation with aPoisson arrival stream of demand requirements for spare components is introduced in the paper. The corresponding discrete-time Markov decision model with finite state and action spaces is described for sequential decisions on order sizes over an infinite planning horizon. The long-run expected average cost per unit time is the criterion of interest to be minimised by an optimal inventory control policy.https://komunikacie.uniza.sk/artkey/csl-200004-0003_cost-effective-inventory-control-under-risk.phpmarkov decision processesinventory controlperiodicreview inventory systems |
| spellingShingle | Ondrej Bartl Cost-Effective Inventory Control Under Risk Communications markov decision processes inventory control periodicreview inventory systems |
| title | Cost-Effective Inventory Control Under Risk |
| title_full | Cost-Effective Inventory Control Under Risk |
| title_fullStr | Cost-Effective Inventory Control Under Risk |
| title_full_unstemmed | Cost-Effective Inventory Control Under Risk |
| title_short | Cost-Effective Inventory Control Under Risk |
| title_sort | cost effective inventory control under risk |
| topic | markov decision processes inventory control periodicreview inventory systems |
| url | https://komunikacie.uniza.sk/artkey/csl-200004-0003_cost-effective-inventory-control-under-risk.php |
| work_keys_str_mv | AT ondrejbartl costeffectiveinventorycontrolunderrisk |