Abstract
We consider a dynamic inventory control system described by a network model with an interval assigned nonstationary demand. We assume that unknown demand may take any value within the interval, which bounds depend on time. In terms of Kaucher interval arithmetic, we derive necessary and sufficient conditions for the existence of a feasible feedback control and sufficient conditions for the existence of an optimal feedback control strategy. We obtain an optimal feasible storage level and estimate the rate of the system convergence to this level. Then we develop the algorithm of finding the optimal control strategy. These results are applied to an example.
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Chausova, E.V. Dynamic Network Inventory Control Model with Interval Nonstationary Demand Uncertainty. Numerical Algorithms 37, 71–84 (2004). https://doi.org/10.1023/B:NUMA.0000049457.89377.12
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DOI: https://doi.org/10.1023/B:NUMA.0000049457.89377.12