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Fuzzy Criterion Decision Processes

  • Baoding Liu
  • Augustine O. Esogbue
Chapter
  • 144 Downloads
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 20)

Abstract

In the standard inventory theory literature, an inventory problem is usually formulated as an optimization problem using the dynamic programming model framework. As pointed out earlier, the resultant model typically seeks a policy which minimizes the total inventory cost, i.e., the weighted sum of all inventory costs incurred over their respective stages. Recall that we called this criterion economic criterion, and the associated inventory model economic criterion model. Additionally, we stressed that the estimation of cost parameters but most notably, the shortage cost, is usually difficult to realize in practice. Experience shows however, that in many instances, the manager is not necessarily concerned with minimizing the inventory cost or maximizing the economic benefit. Rather, he is usually more interested in operating the inventory system as normally as possible. Thus, it is helpful to develop a new formalism, without cost parameters, to suit the needs of inventory management problems of this genre.

Keywords

Criterion Decision Inventory Level Reservoir Operation Unimodal Function Optimal Inventory 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Baoding Liu
    • 1
  • Augustine O. Esogbue
    • 2
  1. 1.Department of Applied MathematicsTsinghua UniversityBeijingChina
  2. 2.School of Industrial and Systems EngineeringGeorgia Institute of TechnologyAtlantaUSA

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