Optimal (R, nQ) Policies for Serial Inventory Systems with Guaranteed Service

Conference paper
Part of the Operations Research Proceedings book series (ORP)

Abstract

In this paper, serial inventory systems with Poisson external demand and fixed costs at each stock are considered and the guaranteed-service approach (GSA) is used to design their optimal echelon (R, nQ) inventory policies. The problem is decomposed into two independent sub-problems, batch size decision sub-problem and reorder point decision sub-problem, which are solved optimally by using a dynamic programming algorithm and a branch and bound algorithm, respectively. Numerical experiments on randomly generated instances demonstrate the efficiency of these algorithms.

Keywords

Service Time Customer Demand Inventory Policy Average Computation Time Inventory Replenishment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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    Chen, F., Y. -S. Zheng.:Near-optimal echelon-stock (R,nq) policiers in multistage serial systems. Operations Research. 46, 592-602.(1998)Google Scholar
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    Hadley, G., T. M. Whitin.:A family of inventory model. Management Science, 7, 351-371.(1961)Google Scholar
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    Graves, S. C., Willems, S. P.: Strategic safety stock placement in supply chain. Proceedings of the 1996 MSOM Conference, Hanover, NH.(1996)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Laboratoire d’Optimisation des Système Industriels, Institut Charles Delaunay and UMR CNRS STMR 6279Université de Technologie de TroyesTroyesFrance

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