Multidimensional Economic Criterion Models
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Let us now turn our attention to the multidimensional version of the economic criterion model presented in Chapter Two. Here, we have m commodities whose inventory levels will be denoted by x1, x2,⋯, x m , or by a vector x = (x1, x2,⋯, x m ), and the demand ξ = (ξ1, ξ2,⋯, ξ m ) is subject to a joint density function φ n (ξ1, ξ2,⋯, ξ m ) at stage n. We note that this situation, although more complex, is more prevalent in real world inventory systems than the single commodity case treated earlier.
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