Type & year
Business Papers · 2013
Business Papers · 2013 · Supply Chains · Methods & Practice
Optimal inventory control with shrinkage and observed sales
Alain Bensoussan, Metin Çakanyıldırım, Meng Li, Suresh P. Sethi
Stochastics 85(4), 589–603
Summary
For a periodic-review inventory system with lost demand and shrinkage, the study transforms nonlinear belief updates into a linear form using unnormalized conditional probabilities. It establishes existence and uniqueness results for the associated Bellman equation.
Record
Research theme
Supply Chains · Methods & Practice
Publication
Stochastics 85(4), 589–603
Suggested citation
Alain Bensoussan, Metin Çakanyıldırım, Meng Li, Suresh P. Sethi (2013). Optimal inventory control with shrinkage and observed sales. Stochastics 85(4), 589–603.