Linear programming application in optimal control of an inventory
In this paper we consider the application of the Markovian decision processes for decision making in defining an optimal policy in order to control inventory systems. We assume that the demand process has a stochastic nature and can be described using a Poisson distribution. To define an optimal control policy, based on the Markovian decision processes we use a proper cost structure, sets of possible solutions and final number of states, described applying a proper transition matrix. In order to realize the optimal control policy we use the linear programming approach.
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