On Computing Order Quantities for Perishable Inventory Control with Non-stationary Demand
The determination of order quantities in an inventory control problem of perishable products with non-stationary demand can be formulated as a Mixed Integer Nonlinear Programming problem (MINLP). One challenge is to deal with the \(\beta \)-service level constraint in terms of the loss function. This paper studies the properties of the optimal solution and derives specific algorithms to determine optimal quantities.
KeywordsInventory control Perishable products MINLP Loss function Monte Carlo
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