Physical Sciences and Mathematics Commons^™

Analysis Of Inventory Models With Random Supply Using A Long-Term Average Criterion, Lars Moestue

Theses and Dissertations

In this thesis we will use different numerical algorithms for inventory models, where the inventory level is described by a stochastic differential equation and therefore random. Furthermore we assume that order supply is randomly distributed. The goal is to find the optimal order strategy to minimize the long-term average costs.\\

This stochastic problem can be reformulated as non-linear optimization problem. However the problems are too complex to solve by hand, so we need to use numerical optimization algorithms and for some of the models even numerical integration methods. \\

These algorithms then can be used to analyze some properties and …