Research Reports from the Department of Operations

Authors

M. Venkatesan

Document Type

Report

Publication Date

7-1-1980

Abstract

A two-dimensional Markov Decision Process model is used to combine the Production-Inventory problem and the Equipment Replacement problem (PIER). A new set of sufficient conditions is provided for optimality of a simply structured monotone policy that achieves the minimum expected discounted cost for any finite horizon problem.

Keywords

Markov processes, Stochastic processes, Inventory control, Inventories--Mathematical models, Replacement of industrial equipment--Mathematical models, Operations research

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 473

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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