A new robust cycle-based inventory control policy
نویسندگان
چکیده
Abstract In this paper, we propose a new robust cycle-based control policy for single installation inventory models with non-stationary uncertain demand. The policy is simple, flexible, easily implementable and preliminary numerical experiments suggest that the policy has very promising empirical performance. The policy can be used both when the excess demand is backlogged as well as when it is lost; with non-zero fixed ordering cost, and also when lead time is non-zero. The policy decisions are computed by solving a collection of linear programs even when there is a positive fixed ordering cost. The policy extends in a very simple manner to the joint pricing and inventory control problem.
منابع مشابه
Controlling the Bullwhip Effect in a Supply Chain Network with an Inventory Replenishment Policy by a Robust Control Method
This paper develops a mathematical model using differential equations and considers a bullwhip effect in a supply chain network with multiple retailers and distributors. To ensure the stability of the entire system and reduce the bullwhip effect, a robust control method and an inventory replenishment policy are proposed. This shows that the choice of the output matrix may reduce the bullwhip ef...
متن کاملAn Inventory Model for Obsolescence Items with Consideration of Permissible Delay in Payments (Case Study of Obsolete Medicines in Pharmacies)
Background and Objectives: In the real world, the obsolescence items are some items that lose their value over time due to the emergence of new technology. Because of rapid changes in technology, inventory management of such items is considered in recent years. Moreover, suppliers try to encourage the retailers for purchasing an item before it is outmoded with some policies suc...
متن کاملRobust Discretionary Monetary Policy under Cost-Push Shock Uncertainty of Iran’s Economy
T here is always uncertainty about the soundness of an economic model’s structure and parameters. Therefore, central banks normally face with uncertainty about the key economic explanatory relationships. So, policymaker should take into account the uncertainty in formulating monetary policies. The present study is aimed to examine robust optimal monetary policy under uncertainty, by ...
متن کاملRobust inventory control under demand and lead time uncertainty
In this paper a general methodology is proposed based on robust optimization for an inventory control problem subject to uncertain demands and uncertain lead times. Several lead time uncertainty sets are proposed based on the budget uncertainty set, and a set based on the central limit theorem (CLT). Robust optimization models are developed for a periodic review, finite horizon inventory contro...
متن کاملSolving Robust Inventory Problems
Solving Robust Inventory Problems In this work we consider setting the optimal inventory control policies for a single buffer when demand is uncertain, in a robust framework. Unlike traditional inventory models we do not assume that the demand is random with a known distribution. Instead, demand can take values from a given uncertainty set. Our objective is to find the policy that minimize the ...
متن کامل