Regenerative process

In applied probability, a regenerative process is a class of stochastic process with the property that certain portions of the process can be treated as being statistically independent of each other.

Regenerative processes were first defined by Walter L. Smith in Proceedings of the Royal Society A in 1955.

[5] These time point may themselves be determined by the evolution of the process.

[6] Intuitively this means a regenerative process can be split into i.i.d.

[7] When T0 = 0, X(t) is called a nondelayed regenerative process.

Regenerative processes have been used to model problems in inventory control. The inventory in a warehouse such as this one decreases via a stochastic process due to sales until it gets replenished by a new order. [ 1 ]