Near-optimal modified base stock policies for the capacitated inventory problem with stochastic demand and fixed cost
Asia-Pacific Journal of Operational Research, cilt.31, sa.3, 2014 (SCI-Expanded, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 31 Sayı: 3
- Basım Tarihi: 2014
- Doi Numarası: 10.1142/s0217595914500195
- Dergi Adı: Asia-Pacific Journal of Operational Research
- Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
- Anahtar Kelimeler: capacity restriction, fixed ordering cost, Inventory, stochastic processes
- Boğaziçi Üniversitesi Adresli: Evet
Özet
In this study, we investigate a single-item, periodic-review inventory problem where the production capacity is limited and unmet demand is backordered. We assume that customer demand in each period is a stationary, discrete random variable. Linear holding and backorder cost are charged per unit at the end of a period. In addition to the variable cost charged per unit ordered, a positive fixed ordering cost is incurred with each order given. The optimization criterion is the minimization of the expected cost per period over a planning horizon. We investigate the infinite horizon problem by modeling the problem as a discrete-time Markov chain. We propose a heuristic for the problem based on a particular solution of this stationary model, and conduct a computational study on a set of instances, providing insight on the performance of the heuristic. © 2014 World Scientific Publishing Co.