Articlegreen2009

Newsvendor bounds and heuristics for serial supply chains with regular and expedited shipping

24 citations0/0 files storedNaval Research Logistics (NRL)

No readable copy stored yet — this record is metadata only.

Supply Chain and Inventory Management Sustainable Supply Chain Management Logistics and Transportation Systems

Abstract

Abstract We study an infinite‐horizon, N‐stage, serial production/inventory system with two transportation modes between stages: regular shipping and expedited shipping. The optimal inventory policy for this system is a top–down echelon base‐stock policy, which can be computed through minimizing 2N nested convex functions recursively (Lawson and Porteus, Oper Res 48 (2000), 878–893). In this article, we first present some structural properties and comparative statics for the parameters of the optimal inventory policies, we then derive simple, newsvendor‐type lower and upper bounds for the optimal control parameters. These results are used to develop near optimal heuristic solutions for the echelon base‐stock policies. Numerical studies show that the heuristic performs well. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2010

Citations in this library

Stored only when both papers are in the corpus — 24 citations exist upstream.

References

2000Foundations of Inventory Management 1960Optimal Policies for a Multi-Echelon Inventory Problem 2004Optimal Policies for a Multi-Echelon Inventory Problem 1984Computational Issues in an Infinite-Horizon, Multiechelon Inventory Model 1994Lower Bounds for Multi-Echelon Stochastic Inventory Systems 1964Optimal Policies for the Inventory Problem with Negotiable Leadtime 1977Optimal Inventory Under Stochastic Demand with Two Supply Options 2008Now or Later: A Simple Policy for Effective Dual Sourcing in Capacitated Systems

Imported from OpenAlex (CC0) — nothing here is generated.