A production inventory problem with limited backlogging and with stockouts is described in a discrete time, stochastic optimal control framework with finite horizon. It is proved by dynamic programming methods that an optimal policy is of (s,S)-type. This means that in every period the policy is completely determined by two fixed levels of the stochastic inventory process considered.
@article{bwmeta1.element.bwnjournal-article-zmv24i3p343bwm,
author = {Ryszarda Rempa\l a},
title = {(s,S)-type policy for a production inventory problem with limited backlogging and with stockouts},
journal = {Applicationes Mathematicae},
volume = {24},
year = {1997},
pages = {343-354},
zbl = {0894.90056},
language = {en},
url = {http://dml.mathdoc.fr/item/bwmeta1.element.bwnjournal-article-zmv24i3p343bwm}
}
Rempała, Ryszarda. (s,S)-type policy for a production inventory problem with limited backlogging and with stockouts. Applicationes Mathematicae, Tome 24 (1997) pp. 343-354. http://gdmltest.u-ga.fr/item/bwmeta1.element.bwnjournal-article-zmv24i3p343bwm/
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