Computing non-stationary (s, S) policies using mixed integer linear programming
European Journal of Operational Research, cilt.271, sa.2, ss.490-500, 2018 (SCI-Expanded, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 271 Sayı: 2
- Basım Tarihi: 2018
- Doi Numarası: 10.1016/j.ejor.2018.05.030
- Dergi Adı: European Journal of Operational Research
- Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
- Sayfa Sayıları: ss.490-500
- Anahtar Kelimeler: (s, S) policy, Binary search, Inventory, Mixed integer programming, Stochastic lot-sizing
- Hacettepe Üniversitesi Adresli: Evet
Özet
This paper addresses the single-item single-stocking location non-stationary stochastic lot sizing problem under the (s, S) control policy. We first present a mixed integer non-linear programming (MINLP) formulation for determining near-optimal (s, S) policy parameters. To tackle larger instances, we then combine the previously introduced MINLP model and a binary search approach. These models can be reformulated as mixed integer linear programming (MILP) models which can be easily implemented and solved by using off-the-shelf optimization software. Computational experiments demonstrate that optimality gaps of these models are less than 0.3% of the optimal policy cost and computational times are reasonable.