Objective: To learn how to control inventory costs and applications of Dynamic programming
Pre-requisite: Knowledge of Calculus
Outline:
Inventory control - Different variables involved. Single item deterministic- Economic lot size models with uniform rate, finite & infinite production rates, with or without shortage-Multi-item models with one constant.
Deterministic models with price-breaks- AII units discount model and incremental discount model. Probabilistic single period profit maximization models with uniform demand, instantaneous demand, with or without setup cost.
Dynamic inventory models, Multi-echelon problems. Integrated approach to production inventory and to maintenance problems. Feed back control in inventory management.
Dynamic programming - Bellman's principle of optimality, characteristics of a dynamic programming problem. Solutions of simple classical problems with single constraint. Solution to Linear Programming problem and Integer Programming problem using Dynamic programming approach.
Applications of dynamic programming-The shortest path through a network, production planning, inventory problems, investment planning, cargo loading and Knapsack problems.
Books:
1. Starr and Miller, "Inventory control Theory and Practice", 1st Edition, 1985, PHI
2. Taha H.A, "Operations Research: An Introduction", 6th Edition, 1996, Macmillan.
3. Robert E. Larson and John L.Casti, "Principles of Dynamic Programming", Vol-I and II, 1st edition, 1982, Marcel Dekker.
