Cost-based filtering for Stochastic inventory control


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TARIM Ş. A., HNİCH B., Rossi R., Prestwich S.

11th Annual ERCIM International Workshop on Constraint Solving and Contraint Logic Programming, Caparica, Portugal, 26 - 28 June 2006, vol.4651, pp.169-171 identifier identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 4651
  • Doi Number: 10.1007/978-3-540-73817-6_11
  • City: Caparica
  • Country: Portugal
  • Page Numbers: pp.169-171
  • Hacettepe University Affiliated: Yes

Abstract

An interesting class of production/inventory control problems considers a single product and a single stocking location, given a stochastic demand with a known non-stationary probability distribution. Under a widely-used control policy for this type of inventory system, the objective is to find the optimal number of replenishments, their timings and their respective order-up-to-levels that meet customer demands to a required service level. We extend a known CP approach for this problem using a cost-based filtering method. Our algorithm can solve to optimality instances of realistic size much more efficiently than previous approaches, often with no search effort at all.