A probabilistic dynamic programing model for determining optimum inventories

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Authors
Wang, John
Zhou, Steve Bin
Pei, Zhi
Issue Date
2020-06
Type
Article
Language
en_US
Keywords
Probabilistic inventory model , Mathematical models , Inventory , Optimization , Snow , Roads and highways , Salt
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Abstract

The occurrence and size of snowfall, and therefore, the level of demand for salt, are uncertain for each week. Therefore, a probabilistic inventory model is required. This will be a periodic review model - the inventory of salt at the beginning of each week will determine the optimal quantity to be purchased to satisfy expected demand. Dynamic programming with a backward recursion is utilized to determine weekly optimal costs/inventory level.

Description
Published in SOAR: Shocker Open Access Repository by Wichita State University Libraries Technical Services, November 2022.
Citation
Wang, J., Zhou, S. B., & Pei, Z. (2020). A probabilistic dynamic programing model for determining optimum inventories. Journal of Management & Engineering Integration, 13(1), 86-95. https://doi.org/10.62704/10057/24748
Publisher
Association for Industry, Engineering and Management Systems (AIEMS)
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ISSN
1939-7984
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