Stochastic Production/Inventory Systems with Distribution Free Approach

Sang-Jin Choi

It is very hard in real world inventory problem to find the optimal policy and decision making. In which case, we are obliged to develop the model which mirrors the real system. But it is very complicate to find the optimal in incomplete model since all inventory models require some information such as the demand and lead time for the item. This paper studies the optimal solution procedure when the uncertainty exists in stochastic inventory model and investigates the difference between approximate model and exact model. Several kinds of inventory model are introduced and the solution of each model is developed, respectively.