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Optimal issuing policies under stochastic field lives

Published online by Cambridge University Press:  14 July 2016

Mark Brown  and
Herbert Solomon
Mark Brown*
Affiliation:
Cornell University
Herbert Solomon*
Affiliation:
George Washington University
*
*Now at the City College, C.U.N.Y.
**Now at Stanford University.
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Abstract

We consider a stockpile in which each item has a stochastic field life with known distribution, this distribution changing in time in a known deterministic fashion. The problem is to order the items for issuance to the field with the objective of maximizing the total field life. Under monotone likelihood ratio assumptions on the field life distributions, and convexity and concavity assumptions on the change in time of the distributions, we show that LIFO and FIFO policies possess a strong optimality property.

Keywords

OPTIMAL ISSUING POLICIESINVENTORY DEPLETION MANAGEMENTLIFOFIFOSTOCHASTIC ORDERINGMONOTONE LIKELIHOOD RATIOSTOCHASTIC FIELD LIVES
Type
Research Papers
Information
Journal of Applied Probability , Volume 10 , Issue 4 , December 1973 , pp. 761 - 768
Copyright
Copyright © Applied Probability Trust 1973 

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Footnotes

Research supported by contract N00014-67-A-2014 Task 0001, Project NR-347020, Office of Naval Research with George Washington University.

References

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