Equivalent Formulations of the Stochastic Cash Balance Problem

1 November 1972

journal article
Published by Institute for Operations Research and the Management Sciences (INFORMS) in Management Science

Vol. 19 (3) , 250-253
https://doi.org/10.1287/mnsc.19.3.250

Abstract

This paper shows that the widely appearing "marginal cost" formulations of the dynamic, periodic review, stochastic cash balance problem are equivalent to a "total cost" formulation, as long as the holding, shortage cost, and "closing of account" functions are constructed correctly.

Keywords

STOCHASTIC
FUNCTIONS
HOLDING
ACCOUNT
CASH BALANCE
CORRECTLY
FORMULATIONS
SHORTAGE
BALANCE PROBLEM

This publication has 0 references indexed in Scilit: