An Optimal Policy for a Manufacturer’s Sales Problem Using Markov Decision Model

Abstract

The success rate of any firm in the industry depends greatly on its sales output. This is achievable only when certain strategies are employed to overcome competition pressures from allied firms. We utilize the tools of Markov decision process in designing our model that improves on the quality of advertisement, research and manpower development to yield an optimal choice leading to profit maximization and cost effectiveness. Finally, we solve our model equations by the value iteration method