Abstract
Chapter 4 showed how to test algorithms for stability in the small and presented examples of stable and unstable (linear) algorithms. The chapter also discussed the monotonicity and reliability of linear order-based algorithms. However, it did not examine in detail the general (non-linear) case. To be useful, general policies should avoid negative orders, be reliable in the sense of (1.5), be strongly stable, and stay close to dynamic target inventory levels while tracking the customer demand. Designing useful policies is more an art than a science. In the next few sections we present the simplest policy we have been able to envision with all these properties.
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© 2003 Springer-Verlag Berlin Heidelberg
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Daganzo, C.F. (2003). Strongly Stable Policies: The Act Method. In: A Theory of Supply Chains. Lecture Notes in Economics and Mathematical Systems, vol 526. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-18152-8_5
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DOI: https://doi.org/10.1007/978-3-642-18152-8_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-00288-8
Online ISBN: 978-3-642-18152-8
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