Continuous (s, S) policy with MMPP correlated demand
We consider dynamic (s, S) policies where demand is modeled by a correlated MMPP. We present an algorithmic approach to calculate the steady state measures of the inventory system. We present heuristics to calculate the optimal policy. The impact of correlation on the demand-count process is investigated. We compare our policy with existing heuristics utilizing the demand-count Normality assumption.
mmpp correlated demand inventory systems stochastic demand ordering policies