Optimal policies in continuous time inventory control models with limited supply (Q597374)

This paper investigates the problem of deriving a sales policy for a given number \(C\) of goods which have to be sold in the fixed time period \([0,T]\). Whenever a demand arrives, consisting of a certain price \(\pi_k\), \(k=1,\ldots,K\), and a size \(s\), \(s=1,\ldots,S\), a decision has to be made, whether or not to accept the demand. Assuming that the demand arrival process is independent of the sales policy and follows a semi-Markov process, the existence of an optimal sales policy is shown, which maximizes the first moment of the total revenue. A few properties of the optimal solution are given.