# zbMATH — the first resource for mathematics

Computing the optimal policy for capacitated inventory models. (English) Zbl 0804.90038
The inventory position $$x$$ is defined as (stock on hand) $$+$$ (stock on order) $$-$$ (backorders). A base stock policy with a critical level $$z$$ is one in which the inventory position is raised to $$z$$ if $$x< z$$, and no production is done if $$x\geq z$$. The author presents a method to compute the optimal value of $$z$$ under the condition that the production capacity in every period is bounded. The main idea of the approach is a connection between the problem described above and the classical dam theory developed by Prabhu in the 60-s.

##### MSC:
 90B05 Inventory, storage, reservoirs
##### Keywords:
capacitated inventory; base stock policy; dam theory
Full Text: