Access the full text.
Sign up today, get DeepDyve free for 14 days.
A. Veinott, H. Wagner (1965)
Computing Optimal (s, S) Inventory PoliciesManagement Science, 11
H. Wagner, M. O’Hagan, B. Lundh (1965)
An Empirical Study of Exactly and Approximately Optimal Inventory PoliciesManagement Science, 11
D. Iglehart (1963)
Optimality of (s, S) Policies in the Infinite Horizon Dynamic Inventory ProblemManagement Science, 9
R. Kaufman (1977)
(S,S) Inventory Policies in a Nonstationary Demand Environment. Appendices.
(1962)
Approximations to Optimal Policies in a Dynamic Inventory Model
Carl Schultz (1980)
Wholesale Warehouse Inventory Control with Statistical Demand Information.
Carl Schultz, H. Wagner, R. Ehrhardt (1979)
(S,S) Inventory Policies for a Wholesale Warehouse Inventory System.
In this paper we present a new analytic approximation for computing (s, S) policies for single items under periodic review with a set-up cost, linear holding and shortage costs, fixed replenishment lead time, and backlogging of unfilled demand. The approximation formulae are derived by using existing results of asymptotic renewal theory to characterize the behavior of the optimal policy numbers as functions of the model parameters. These functions are then used to construct regressions with coefficients that are calibrated by using a grid of 288 known optimal policies as data. The resulting Power Approximation policies (formulae) are easy to compute and. require for demand information only the mean and variance of demand over lead time. Extensive computational results show that the approximations yield expected total costs that typically are well within one percent of optimal. The approximation's robustness is exemplified by analyzing its performance when statistical estimates are used in place of the actual mean and variance of demand.
Management Science – INFORMS
Published: Aug 1, 1979
Keywords: Keywords : inventory/production: approximations
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.