Merton, Robert C. "Continuous-Time Stochastic Models." In The New Palgrave: A Dictionary of Economic Theory and Doctrine, edited by John Eatwell, Murray Milgate, and Peter Newman. London: Macmillan ...

This article is concerned with the (r, q) inventory model, where demand accumulates continuously, but the demand rate at each instant is determined by an underlying stochastic process. The primary ...