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

  • Peng Li
  • Haoxun Chen
Conference paper
Part of the Operations Research Proceedings book series (ORP)


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.


Service Time Customer Demand Inventory Policy Average Computation Time Inventory Replenishment 
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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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