Stationary inventory control policies in supply systems under inflation conditions

Abstract

This paper considers the feasibility of using the optimal parameters of stationary inventory control policies to design inventory control rules in supply systems operating on a real market. The efficiency of the long-sighted and myopic inventory control policies is compared. Different approaches to design the optimal stationary policies are investigated. A comparative evaluation of these approaches is given and the specifics of their application are discussed. The optimal parameters of the stationary inventory control policies as functions of the market state and, in particular, of the inflation rate are estimated via simulation experiments.