Building a Multi-Period Probability Dynamic Inventory Model with Application
AL-Rafidain Journal of Computer Sciences and Mathematics,
2013, Volume 10, Issue 1, Pages 85-101
AbstractIn this paper addresses the multi-period single-item inventory problem with stochastic demands. In which the demand in each period is known but it varies from time to time for N replenishment periods.
The main idea is to calculate expected the total minimum cost and the optimal quantity and the optimal replenishment periods using probabilistic dynamic programming.
The results showed the optimal replenishment are (1, 10, 28), optimal quantity is (34974) and the expected total minimum cost is (883.487).
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