Cost-Based Filtering for Stochastic Inventory Control

  • S. Armagan Tarim
  • Brahim Hnich
  • Roberto Rossi
  • Steven Prestwich
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 4651)

Abstract

An interesting class of production/inventory control problems considers a single product and a single stocking location, given a stochastic demand with a known non-stationary probability distribution. 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 a cost-based filtering method. Our algorithm 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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Copyright information

© Springer-Verlag Berlin Heidelberg 2007

Authors and Affiliations

  • S. Armagan Tarim
    • 1
  • Brahim Hnich
    • 2
  • Roberto Rossi
    • 3
  • Steven Prestwich
    • 3
  1. 1.Department of Management, Hacettepe UniversityTurkey
  2. 2.Faculty of Computer Science, Izmir University of EconomicsTurkey
  3. 3.Cork Constraint Computation Centre, University College, CorkIreland

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