Inventory Models with Continuous, Stochastic Demands

Citation
Browne, Sidney et Zipkin, Paul, Inventory Models with Continuous, Stochastic Demands, Annals of applied probability , 1(3), 1991, pp. 419-435
ISSN journal
10505164
Volume
1
Issue
3
Year of publication
1991
Pages
419 - 435
Database
ACNP
SICI code
Abstract
This article is concerned with the (r,q) inventory model, where demand accumulates continuously, but the demand rate at each instant is determined by an underlying stochastic process. The primary result is the demonstration of a certain insensitivity property, which characterizes the limiting behavior of the model. This property drastically simplifies the computation of performance measures for the system.