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Near-optimal modified base stock policies for the capacitated inventory problem with stochastic demand and fixed cost

Title	Near-optimal modified base stock policies for the capacitated inventory problem with stochastic demand and fixed cost
Author	Özener, Okan Örsan, Güllü, R., Erkip, N.
Publication Date:	2014-06
Publication Place	- World Scientific Publishing
Subject	Inventory, Stochastic processes, Capacity restriction, Fixed ordering cost
Type	Periodical
Language	English
Digital	Yes
Manuscript	No
Library:	Özyeğin University
Library Asset ID	1793-7019
Record ID	52445f9b-48b4-4f88-a1f3-9406a7db73ac
Library Location	Industrial Engineering
Date	2014-06
Notes	Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Sample Text	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.
DOI	10.1142/S0217595914500195
Cilt	31

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Near-optimal modified base stock policies for the capacitated inventory problem with stochastic demand and fixed cost

Author Özener, Okan Örsan, Güllü, R., Erkip, N.

Publication Date 2014-06

Publication Place - World Scientific Publishing

Subject Inventory, Stochastic processes, Capacity restriction, Fixed ordering cost

Type Periodical

Language English

Digital Yes

Manuscript No

Library Özyeğin University

Library Asset ID 1793-7019

Record ID 52445f9b-48b4-4f88-a1f3-9406a7db73ac

Library Location Industrial Engineering

Date 2014-06

Notes Due to copyright restrictions, the access to the full text of this article is only available via subscription.

Sample Text 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.

DOI 10.1142/S0217595914500195

Cilt 31