Inventory control over a short time horizon under unknown demand distribution

Konstantin Kogan, Avi Herbon

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

We address inventory control by a manufacturer under stochastic customer demand over a finite time horizon when little is known about the demand. To handle the problem, we replace it with a deterministic differential game in which the manufacturer competes with the customer's demand. On the basis of the conjectural variation equilibrium of this game, we derive a heuristic for the original stochastic problem; conjectural variation is used as a tuning parameter for the heuristic.

Original languageEnglish
Article number7315028
Pages (from-to)3058-3063
Number of pages6
JournalIEEE Transactions on Automatic Control
Volume61
Issue number10
DOIs
StatePublished - 2016

Keywords

  • Conjectural variation
  • Differential games
  • Inventory control
  • Stochastic demands

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