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Author: Awi Federgruen Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We analyze a periodic review stochastic inventory model with T periods and I items. At the beginning of each period, the inventory position of each item can be adjusted by placing an order or by salvaging some of the inventory. There is a limited capacity for the total inventory held at the end of each period. Orders arrive and salvage batches deplete the inventory after a given lead time. In addition to variable order and salvaging costs, there are linear or convex holding and backlogging costs. In every period, the probability of the aggregate inventory level exceeding the prevailing inventory capacity must be smaller than a given tolerance.In this paper we show that when demands are independent across items or when each item is correlated with at most O(1) other items, a simple structured policy can be found which is asymptotically optimal when the number of items I grows to infinity. We achieve these results by showing that the problem, specified with chance constraints on the overflow probability in each period, can be sandwiched in between two problems with sets of expected value constraints.
Author: Awi Federgruen Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We analyze a periodic review stochastic inventory model with T periods and I items. At the beginning of each period, the inventory position of each item can be adjusted by placing an order or by salvaging some of the inventory. There is a limited capacity for the total inventory held at the end of each period. Orders arrive and salvage batches deplete the inventory after a given lead time. In addition to variable order and salvaging costs, there are linear or convex holding and backlogging costs. In every period, the probability of the aggregate inventory level exceeding the prevailing inventory capacity must be smaller than a given tolerance.In this paper we show that when demands are independent across items or when each item is correlated with at most O(1) other items, a simple structured policy can be found which is asymptotically optimal when the number of items I grows to infinity. We achieve these results by showing that the problem, specified with chance constraints on the overflow probability in each period, can be sandwiched in between two problems with sets of expected value constraints.
Author: Xin Chen Publisher: ISBN: Category : Languages : en Pages : 43
Book Description
We consider a traditional joint pricing and inventory control problem with lead times, which has been extensively studied in the literature but is notoriously difficult to solve due to the complex structure of the optimal policy. In this work, rather than analyzing the optimal policy, we propose a class of so-called constant-order dynamic pricing policies, which are quite different from base-stock heuristics, the primary focus in the existing literature. Under such a policy, a constant-order amount of new inventory is ordered every period and a pricing decision is made based on the on-hand inventory. The policy is independent of the lead time and does not suffer from the curse of dimensionality. We prove that the best constant-order dynamic pricing policy is asymptotically optimal as the lead time grows large, which is exactly the setting in which the problem becomes computationally intractable due to the curse of dimensionality. As a main methodological contribution, we implement the so-called vanishing discount factor approach and establish the convergence to a long-run average random yield inventory model with zero lead time and ordering capacities by its discounted counterpart as the discount factor goes to one, non-trivially extending the previous results in Federgruen and Yang (2014) that analyze a similar model but without capacity constraints.
Author: Satya Kumar Das Publisher: Infinite Study ISBN: Category : Mathematics Languages : en Pages : 14
Book Description
In this paper, we have developed a multi-objective inventory model with constant demand rate, under the limitation on storage of space. Production cost is considered in demand dependent and the deterioration cost is considered in average inventory level dependent. Also inventory holding cost is dependent on time.
Author: Bruce L. Miller Publisher: ISBN: Category : Inventories Languages : en Pages : 19
Book Description
The paper is an investigation of the mathematical programming problem of maximizing a joint backorder (NORS) criterion subject to a budget constraint. The single-echelon model used in this study employs a criterion different from METRIC's sum of backorders. Moreover, it modifies the problem by assuming that all variables are continuous. It is proven that the NORS criterion is convex so that a global optimum can be found by a large number of nonlinear programming algorithms. It is also shown that one tends to buy more of the high-cost and high-variance items using NORS criterion. Thus, the answers obtained by the NORS criterion should line up fairly closely with Air Force intuition on stockage policy. (Author).
Author: Nita H. Shah Publisher: Springer Nature ISBN: 9811396981 Category : Business & Economics Languages : en Pages : 470
Book Description
This book discusses inventory models for determining optimal ordering policies using various optimization techniques, genetic algorithms, and data mining concepts. It also provides sensitivity analyses for the models’ robustness. It presents a collection of mathematical models that deal with real industry scenarios. All mathematical model solutions are provided with the help of various optimization techniques to determine optimal ordering policy. The book offers a range of perspectives on the implementation of optimization techniques, inflation, trade credit financing, fuzzy systems, human error, learning in production, inspection, green supply chains, closed supply chains, reworks, game theory approaches, genetic algorithms, and data mining, as well as research on big data applications for inventory management and control. Starting from deterministic inventory models, the book moves towards advanced inventory models. The content is divided into eight major sections: inventory control and management – inventory models with trade credit financing for imperfect quality items; environmental impact on ordering policies; impact of learning on the supply chain models; EOQ models considering warehousing; optimal ordering policies with data mining and PSO techniques; supply chain models in fuzzy environments; optimal production models for multi-items and multi-retailers; and a marketing model to understand buying behaviour. Given its scope, the book offers a valuable resource for practitioners, instructors, students and researchers alike. It also offers essential insights to help retailers/managers improve business functions and make more accurate and realistic decisions.
Author: Awi Federgruen
Author: Awi Federgruen
Author: Xin Chen
Author: François Coblentz
Author: Satya Kumar Das
Author: William Edward Daeschner
Author: Z. P. Bayindir
Author: Esfandiar Lohrasbpour
Author: Bruce L. Miller
Author: S. N. Heng
Author: Nita H. Shah