KMS Of Academy of mathematics and systems sciences, CAS
| Optimal Policies for Brownian Inventory Systems With a Piecewise Linear Ordering Cost | |
Yao, Dacheng1 ; Chao, Xiuli2; Wu, Jingchen3
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| 2017-07-01 | |
| Source Publication | IEEE TRANSACTIONS ON AUTOMATIC CONTROL
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| ISSN | 0018-9286 |
| Volume | 62Issue:7Pages:3235-3248 |
| Abstract | We consider a stochastic inventory system with general piecewise linear ordering cost. The cumulative demand is modeled as a Brownian motion process. The ordering cost function is neither convex nor concave; it may not be monotone; and it is not even necessarily continuous, and it includes most ordering cost functions studied in the literature, e.g., economies-of-scale or dis-economies of scale, all-unit discount or incremental discount, and multiple setup costs, as special cases. In addition to ordering cost, the system incurs the usual holding/shortage cost, and the objective is to minimize the average system cost per unit of time. Despite the complexity in the ordering cost function, we show that an optimal control policy is very simple: it is either an (s, S) policy or a one-sided singular control policy. |
| Keyword | Brownian inventory system general ordering cost optimal control (s, S) policy singular control policy |
| DOI | 10.1109/TAC.2016.2626790 |
| Language | 英语 |
| Funding Project | National Natural Science Foundation of China[11401566] ; NSF[CMMI-1131249] ; NSF[CMMI-1362619] |
| WOS Research Area | Automation & Control Systems ; Engineering |
| WOS Subject | Automation & Control Systems ; Engineering, Electrical & Electronic |
| WOS ID | WOS:000404299300010 |
| Publisher | IEEE-INST ELECTRICAL ELECTRONICS ENGINEERS INC |
| Citation statistics | |
| Document Type | 期刊论文 |
| Identifier | http://ir.amss.ac.cn/handle/2S8OKBNM/25840 |
| Collection | 应用数学研究所 |
| Corresponding Author | Yao, Dacheng |
| Affiliation | 1.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China 2.Univ Michigan, Dept Ind & Operat Engn, Ann Arbor, MI 48109 USA 3.Univ Michigan, Math Dept, Ann Arbor, MI 48109 USA |
| Recommended Citation GB/T 7714 | Yao, Dacheng,Chao, Xiuli,Wu, Jingchen. Optimal Policies for Brownian Inventory Systems With a Piecewise Linear Ordering Cost[J]. IEEE TRANSACTIONS ON AUTOMATIC CONTROL,2017,62(7):3235-3248. |
| APA | Yao, Dacheng,Chao, Xiuli,&Wu, Jingchen.(2017).Optimal Policies for Brownian Inventory Systems With a Piecewise Linear Ordering Cost.IEEE TRANSACTIONS ON AUTOMATIC CONTROL,62(7),3235-3248. |
| MLA | Yao, Dacheng,et al."Optimal Policies for Brownian Inventory Systems With a Piecewise Linear Ordering Cost".IEEE TRANSACTIONS ON AUTOMATIC CONTROL 62.7(2017):3235-3248. |
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