Abstract
Most of the models in inventory theory make the assumption that either the future demand is known precisely, or that it may be described by a definite probability distribution. This was the case with the models discussed in the previous chapters. As a departure, Scarf[132] considered a one-stage inventory model in which only the mean and deviation of the distribution are assumed to be known. Scarf[132] then proved that an optimal inventory policy exists which maximizes the minimum profit per stage, considering all distributions with the given mean and deviation.
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© 1999 Springer Science+Business Media New York
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Liu, B., Esogbue, A.O. (1999). Minimax Solutions of Economic Criterion Models. In: Decision Criteria and Optimal Inventory Processes. International Series in Operations Research & Management Science, vol 20. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5151-5_5
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DOI: https://doi.org/10.1007/978-1-4615-5151-5_5
Publisher Name: Springer, Boston, MA
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Online ISBN: 978-1-4615-5151-5
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