Abstract

This paper considers an inventory control problem with multiple-period replenishment lead time and nonstationary stochastic demand, and provides an optimal nonstationary (s, S) policy for this problem. Through analyzing the inventory relationship between consecutive periods, a stochastic dynamic programming model is established, then an optimal solution algorithm is developed, and the solution has the nonstationary (s, S) form. By simulation the performances of the proposed policy and current methods are computed, and the effectiveness of this policy is verified. Then this policy is applied to a real cases study, and application results are given.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.