Stochastic Models with Continuous Review

  • Dieter Bartmann
  • Martin J. Beckmann
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 388)

Abstract

We already encountered in §23 an inventory model with continuous review. A Poisson demand was assumed. It was shown that under this special assumption the optimal order quantity D is the same as that in the deterministic model with a constant demand rate. D was obtained using the Wilson formula. The interpretation of the objective function C in the stochastic sense led to the method of state probabilities.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1992

Authors and Affiliations

  • Dieter Bartmann
    • 1
  • Martin J. Beckmann
    • 2
  1. 1.Institute of Information ManagementUniversity of St. Gallen for Business, Administration, Economics, Law and Social SciencesSt. GallenSwitzerland
  2. 2.Institute of Applied Mathematics and StatisticsTechnical University of MunichMünchen 2Germany

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