Browsing by Author "Armagan Tarim S."

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    Replenishment Planning for Stochastic Inventory Systems With Shortage Cost
    (Springer Verlag, 2007) Rossi R.; Armagan Tarim S.; Hnich B.; Prestwich S.
    One of the most important policies adopted in inventory control is the (R,S) policy (also known as the "replenishment cycle" policy). Under the non-stationary demand assumption the (R,S) policy takes the form (R n,Sn) where Rn denotes the length of the n th replenishment cycle, and Sn the corresponding order-up-to-level. Such a policy provides an effective means of damping planning instability and coping with demand uncertainty. In this paper we develop a CP approach able to compute optimal (Rn,Sn) policy parameters under stochastic demand, ordering, holding and shortage costs. The convexity of the cost-function is exploited during the search to compute bounds. We use the optimal solutions to analyze the quality of the solutions provided by an approximate MIP approach that exploits a piecewise linear approximation for the cost function. © Springer-Verlag Berlin Heidelberg 2007.