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arXiv · 1806.09216

Optimal periodic replenishment policies for spectrally positive L\'evy demand processes

José-Luis Pérez·Kazutoshi Yamazaki·Alain Bensoussan
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Abstract

We consider a version of the stochastic inventory control problem for a spectrally positive L\'evy demand process, in which the inventory can only be replenished at independent exponential times. We show the optimality of a periodic barrier replenishment policy that restocks any shortage below a certain threshold at each replenishment opportunity. The optimal policies and value functions are concisely written in terms of the scale functions. Numerical results are also provided.

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José-Luis Pérez, Kazutoshi Yamazaki, Alain Bensoussan. 2018-06-24. Optimal periodic replenishment policies for spectrally positive L\'evy demand processes. https://arxiv.org/abs/1806.09216

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