Production-Inventory with Equipment Replacement—PIER

Operations Research · 1984 · Volume 32 · Issue 6

Abstract

A two-dimensional Markov Decision Process model is used to combine the Production-Inventory problem and the Equipment Replacement problem. We provide two sets of sufficient conditions for the combined optimal policy to have a relatively simple monotonic structure.

Keywords

331 with equipment replacement, 357 jointly optimal inventory policies, 362 production-inventory and replacement

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