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Substantiating The Optimal Distribution Policy Using Markov Decision Processes


  • Gheorghe BASANU

    () (Academy of Economic Studies, Piata Romana 6, Bucharest, Romania)

  • Victor TELEASA

    () (Joint Logistic Command, Drumul Taberei, 7-9, Bucharest, Romania)


The paper represents a means of substantiating the optimal politicy of transport and distribution of goods groupage using Markov’s decisional processes, respectively through R. Howard’s method of strategies’ space. This kind of method is based on an iterative optimization algorithm, whose structure permits that, with the successive covering of each method, to limit the number of ulterior repetitions. In this way, the optimal politicy that result, constituted from a number of decisions, finite or not, aims at optimizing the following decisions in a close connection with the first decision’s consequences, whatever that would be. Concretely, a logistic centre’s managers have the responsibility of identifying the optimal transport policy of the unit loads prepared for being shipped in three ways: palletized, containerized and packaged, according to the ways of transport which will be used: causeway, railway and airway, and the costs associated to each shipping means.

Suggested Citation

  • Gheorghe BASANU & Victor TELEASA, 2010. "Substantiating The Optimal Distribution Policy Using Markov Decision Processes," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 2(4), pages 362-370, December.
  • Handle: RePEc:rom:mrpase:v:2:y:2010:i:4:p:362-370

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    References listed on IDEAS

    1. Fred D. Davis & Richard P. Bagozzi & Paul R. Warshaw, 1989. "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models," Management Science, INFORMS, vol. 35(8), pages 982-1003, August.
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    More about this item


    distribution centre; optimal policy; decision; average cost; unit loads.;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management


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