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 language | English |
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Article number | 7315028 |
Pages (from-to) | 3058-3063 |
Number of pages | 6 |
Journal | IEEE Transactions on Automatic Control |
Volume | 61 |
Issue number | 10 |
DOIs | |
State | Published - 2016 |
Keywords
- Conjectural variation
- Differential games
- Inventory control
- Stochastic demands