Replenishment planning for stochastic inventory systems with shortage cost

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

4th International Conference on Integration of AI and OR Techniques in Constraint Programming for Combinatorial Optimization Problems, Brussels, Belçika, 23 - 26 Mayıs 2007, cilt.4510, ss.229-231 identifier identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Cilt numarası: 4510
  • Doi Numarası: 10.1007/978-3-540-72397-4_17
  • Basıldığı Şehir: Brussels
  • Basıldığı Ülke: Belçika
  • Sayfa Sayıları: ss.229-231
  • Hacettepe Üniversitesi Adresli: Evet

Özet

One of the most important policies adopted in inventory control is the (R,S) policy (also known as the "replenishment cycle" policy). Under the non-stationary demand assumption the (R,S) policy takes the form (R,,S,) where R. denotes the length of the n(th) replenishment cycle, and S. the corresponding order-up-to-level. Such a policy provides an effective means of damping planning instability and coping with demand uncertainty. In this paper we develop a CP approach able to compute optimal (R-n,S-n) policy parameters under stochastic demand, ordering, holding and shortage costs. The convexity of the cost-function is exploited during the search to compute bounds. We use the optimal solutions to analyze the quality of the solutions provided by an approximate MIP approach that exploits a piecewise linear approximation for the cost function.