A multi-period inventory model with multi-dimensional procurement bidding

In this work, we consider a multi-period inventory model with raw material procurements done via a reverse auction. Bids are multi-dimensional and they consist of supplier information of price, shortage quantity and lead time. This work is an extension of our earlier work that has integrated single-period inventory models with multidimensional procurement auctions to multi-period settings. The new model is based on a hybrid approach combining stochastic dynamic programming and simulation.