STOCHASTIC INVENTORY MODEL WITH TIME-VARYING DEMAND

Stochastic inventory models with salvaged opportunities at the beginning of each period are constructed in order to research the inventory system of style goods. These inventory models are equipping the notion of demand changes with time in the period. The demand distribution is assumed to be a general continuous distribution. It is attempted to get the way to reduce the expectation of the total inventory cost analytically by differentiating the object function. We state precisely the optimal policies in the inventory model of single period. There are two threshold levels which are founded by solving equations, and using them the object function would take the minimal value at there.