Aggregation and disaggregation in Markov decision models for inventory control

L.M.M. Veugen, J. Wal, van der, J. Wessels

    Research output: Book/ReportReportAcademic

    62 Downloads (Pure)

    Abstract

    In this paper the possibility is investigated of using aggregation in the action space for some Markov decision processes of inventory control type. For the standard (s,S) inventory control model the policy improvement procedure can be executed in a very efficient way, therefore aggregation in the state space is not of much use. However, in situations where the decisions have some aftereffect and, hence, the old decision has to be incorporated in the state, it might be rewarding to aggregate actions. Some variants for aggregation and disaggregation are formulated and analyzed. Numerical evidence is presented.
    Original languageEnglish
    Place of PublicationEindhoven
    PublisherTechnische Hogeschool Eindhoven
    Number of pages19
    Publication statusPublished - 1982

    Publication series

    NameMemorandum COSOR
    Volume8209
    ISSN (Print)0926-4493

    Fingerprint

    Dive into the research topics of 'Aggregation and disaggregation in Markov decision models for inventory control'. Together they form a unique fingerprint.

    Cite this