Inventory control problem: Difference between revisions

Revision as of 04:08, 4 December 2007

Revision as of 14:46, 7 December 2007

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===Equations===

The mathematical approach exists in severaltwo variations, and is typically formulated as follows:

A store has, at time <math>k</math>, <math>x_k</math> items in stock. It then orders (and receives) <math>u_k</math> items, and sells <math>w_k</math> items, where <math>w</math> follows a given probability distribution. Thus

: <math> x_{k+1} = x_k + u_k - w_k</math>.