Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 298, Issue 2, Pages 573-584Publisher
ELSEVIER
DOI: 10.1016/j.ejor.2021.06.013
Keywords
Inventory; (s, Q) Policy; Stochastic lot-sizing; Non-stationary demand
Ask authors/readers for more resources
This paper addresses the single-item single-stocking location non-stationary stochastic lot-sizing problem under a reorder point - order quantity control strategy. The authors present stochastic dynamic programs (SDP) and mixed integer non-linear programming (MINLP) heuristics to determine optimal policy parameters and efficiently compute near-optimal parameters for a broad class of problem instances.
This paper addresses the single-item single-stocking location non-stationary stochastic lot-sizing problem under a reorder point - order quantity control strategy. The reorder points and order quantities are chosen at the beginning of the planning horizon. The reorder points are allowed to vary with time and we consider order quantities either to be a series of time-dependent constants or a fixed value; this leads to two variants of the policy: the (s(t), Q(t)) and the (s(t), Q) policies, respectively. For both policies, we present stochastic dynamic programs (SDP) to determine optimal policy parameters and introduce mixed integer non-linear programming (MINLP) heuristics that leverage piecewise-linear approximations of the cost function. Numerical experiments demonstrate that our solution method efficiently computes near-optimal parameters for a broad class of problem instances. Crown Copyright (C) 2021 Published by Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available