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Cost-Based Filtering Techniques for Stochastic Inventory Control Under Service Level Constraints

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Abstract

This paper1 considers a single product and a single stocking location production/inventory control problem given a non-stationary stochastic demand. Under a widely-used control policy for this type of inventory system, the objective is to find the optimal number of replenishments, their timings and their respective order-up-to-levels that meet customer demands to a required service level. We extend a known CP approach for this problem using three cost-based filtering methods. Our approach can solve to optimality instances of realistic size much more efficiently than previous approaches, often with no search effort at all.

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Author information

Authors and Affiliations

  1. Department of Management, Hacettepe University, Ankara, Turkey

    S. Armagan Tarim

  2. Faculty of Computer Science, Izmir University of Economics, Izmir, Turkey

    Brahim Hnich

  3. Cork Constraint Computation Centre, University College, 14 Washington St. West, Cork, Ireland

    Roberto Rossi & Steven Prestwich

  4. Centre for Telecommunication Value—Chain Driven Research, Dublin, Ireland

    Roberto Rossi

Authors
  1. S. Armagan Tarim
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  2. Brahim Hnich
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  3. Roberto Rossi
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  4. Steven Prestwich
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Corresponding author

Correspondence to Roberto Rossi.

Additional information

This work was supported by Science Foundation Ireland under Grant No. 03/CE3/I405 as part of the Centre for Telecommunications Value-Chain-Driven Research (CTVR) and Grant No. 00/PI.1/C075.

1This paper is an extended version of [19].

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Tarim, S.A., Hnich, B., Rossi, R. et al. Cost-Based Filtering Techniques for Stochastic Inventory Control Under Service Level Constraints. Constraints 14, 137–176 (2009). https://doi.org/10.1007/s10601-007-9039-3

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  • DOI: https://doi.org/10.1007/s10601-007-9039-3

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