Optimal Policy in a Dynamic, Single Product, Nonstationary Inventory Model with Several Demand Classes
Optimal Policy in a Dynamic, Single Product, Nonstationary Inventory Model with Several Demand Classes

Author: Arthur F. Veinott (Jr.)

Publisher:

Published: 1965

Total Pages: 46

ISBN-13:

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A multiperiod single product nonstationary inventory problem is studied in which the system is reviewed at the beginning of each of a sequence of periods of equal length. The model has the following features. There are several classes of demand for the product in each period. The demands in different periods are independent but not necessarily identically distributed. The cost structure is nonstationary with the ordering cost being proportional to the amount ordered. Conditions are given that ensure that the base stock ordering policy is optimal and that the base stock levels in each period are easy to calculate. The results are based on earlier work of the author and on properties of stochastically ordered distributions that are developed in the paper. The case of a linear holding cost and a linear storage cost is studied in detail. (Author).

Optimality of Myopic Inventory Policies for Several Substitute Products
Optimality of Myopic Inventory Policies for Several Substitute Products

Author: Stanford University. Department of Operations Research

Publisher:

Published: 1967

Total Pages: 58

ISBN-13:

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Multiproduct inventory systems with proportional ordering costs and stochastic demands are studied. New conditions are obtained under which a myopic ordering policy (a policy of minimizing expected cost in the current period alone) is optimal for a sequence of periods for all initial inventory levels. An important one of these, the substitute property, holds when the myopic policy is such that increasing the initial inventory of one product does not increase the quantity ordered of any product. Conditions on the one period expected holding and shortage cost function, which are of independent interest in nonlinear programming, are shown to imply the substitute property. Applications of these conditions to models with storage or investment limitations and to a multiechelon model are given. Under backlogging the usual extension to a fixed delivery lag is obtained. Some non-stationary cases are also treated. (Author).

Decision Criteria and Optimal Inventory Processes
Decision Criteria and Optimal Inventory Processes

Author: Baoding Liu

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 220

ISBN-13: 146155151X

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Decision Criteria and Optimal Inventory Processes provides a theoretical and practical introduction to decision criteria and inventory processes. Inventory theory is presented by focusing on the analysis and processes underlying decision criteria. Included are many state-of-the-art criterion models as background material. These models are extended to the authors' newly developed fuzzy criterion models which constitute a general framework for the study of stochastic inventory models with special focus on the real world inventory theoretic reservoir operations problems. The applications of fuzzy criterion dynamic programming models are illustrated by reservoir operations including the integrated network of reservoir operation and the open inventory network problems. An interesting feature of this book is the special attention it pays to the analysis of some theoretical and applied aspects of fuzzy criteria and dynamic fuzzy criterion models, thus opening up a new way of injecting the much-needed type of non-cost, intuitive, and easy-to-use methods into multi-stage inventory processes. This is accomplished by constructing and optimizing the fuzzy criterion models developed for inventory processes. Practitioners in operations research, management science, and engineering will find numerous new ideas and strategies for modeling real world multi- stage inventory problems, and researchers and applied mathematicians will find this work a stimulating and useful reference.

Decision Policies for Production Networks
Decision Policies for Production Networks

Author: Dieter Armbruster

Publisher: Springer Science & Business Media

Published: 2012-03-05

Total Pages: 308

ISBN-13: 0857296442

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The financial results of any manufacturing company can be dramatically impacted by the repetitive decisions required to control a complex production network be it a network of machines in a factory; a network of factories in a company; or a network of companies in a supply chain. Decision Policies for Production Networks presents recent convergent research on developing policies for operating production networks including details of practical control and decision techniques which can be applied to improve the effectiveness and economic efficiency of production networks worldwide. Researchers and practitioners come together to explore a wide variety of approaches to a range of topics including: WIP and equipment management policies, Material release policies, Machine, factory, and supply chain network policies for delivery in the face of supply and demand variability, and Conflicts between complex production network models and their controlling policies. Case studies and relevant mathematical techniques are included to support and explain techniques such as heuristics, global and hierarchical optimization, control theory and filtering approaches related to complex systems or traffic flows. Decision Policies for Production Networks acts as handbook for researchers and practitioners alike, providing findings and information which can be applied to develop methods and advance further research across production networks.

Inventory Management with Alternative Delivery Times
Inventory Management with Alternative Delivery Times

Author: Xiaoying Liang

Publisher: Springer

Published: 2016-11-24

Total Pages: 110

ISBN-13: 3319486357

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This book develops a modeling framework to analyze the problem of inventory management with alternative delivery times. The general context considered here is that a seller replenishes its inventory in fixed intervals and, between replenishments, allocates the limited inventory to satisfy customers who are both price and delivery-time sensitive. On the demand side, customers have heterogeneous delivery-time requirements and choose either spot or late delivery. This theoretical modeling captures the essence of real-world business practices such as the delivery time market segmentation strategy adopted by automobile dealerships in China and many other similar examples. The book focuses on the seller’s optimal inventory replenishment and demand fulfillment policies, and our results provide managerial insights into the merits of flexible delivery-time options. Similar applications such as the group-buying mechanism are also examined. The main mathematical tool used in theoretical analysis is dynamic programming. This book is written for students, researchers, and practitioners in the areas of operations management and industrial engineering who are interested in understanding the rationale of flexible delivery times and designing successful applications.

Advances in Stochastic Dynamic Programming for Operations Management
Advances in Stochastic Dynamic Programming for Operations Management

Author: Frank Schneider

Publisher: Logos Verlag Berlin GmbH

Published: 2014

Total Pages: 172

ISBN-13: 3832536337

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Many tasks in operations management require the solution of complex optimization problems. Problems in which decisions are taken sequentially over time can be modeled and solved by dynamic programming. Real-world dynamic programming problems, however, exhibit complexity that cannot be handled by conventional solution techniques. This complexity may stem from large state and solution spaces, huge sets of possible actions, non-convexities in the objective function, and uncertainty. In this book, three highly complex real-world problems from the domain of operations management are modeled and solved by newly developed solution techniques based on stochastic dynamic programming. First, the problem of optimally scheduling participating demand units in an energy transmission network is considered. These units are scheduled such that total cost of supplying demand for electric energy is minimized under uncertainty in demand and generation. Second, the integrated problem of investment in and optimal operations of a network of battery swap stations under uncertain demand and energy prices is modeled and solved. Third, the inventory control problem of a multi-channel retailer selling through independent sales channels is modeled and optimality conditions for replenishment policies of simple structure are proven. This book introduces efficient approximation techniques based on approximate dynamic programming (ADP) and extends existing proximal point algorithms to the stochastic case. The methods are applicable to a wide variety of dynamic programming problems of high dimension.

Informatics and Management Science IV
Informatics and Management Science IV

Author: Wenjiang Du

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 772

ISBN-13: 1447147936

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The International Conference on Informatics and Management Science (IMS) 2012 will be held on November 16-19, 2012, in Chongqing, China, which is organized by Chongqing Normal University, Chongqing University, Shanghai Jiao Tong University, Nanyang Technological University, University of Michigan, Chongqing University of Arts and Sciences, and sponsored by National Natural Science Foundation of China (NSFC). The objective of IMS 2012 is to facilitate an exchange of information on best practices for the latest research advances in a range of areas. Informatics and Management Science contains over 600 contributions to suggest and inspire solutions and methods drawing from multiple disciplines including: Computer Science Communications and Electrical Engineering Management Science Service Science Business Intelligence

Markov Decision Processes
Markov Decision Processes

Author: Martin L. Puterman

Publisher: John Wiley & Sons

Published: 2014-08-28

Total Pages: 544

ISBN-13: 1118625870

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The Wiley-Interscience Paperback Series consists of selected books that have been made more accessible to consumers in an effort to increase global appeal and general circulation. With these new unabridged softcover volumes, Wiley hopes to extend the lives of these works by making them available to future generations of statisticians, mathematicians, and scientists. "This text is unique in bringing together so many results hitherto found only in part in other texts and papers. . . . The text is fairly self-contained, inclusive of some basic mathematical results needed, and provides a rich diet of examples, applications, and exercises. The bibliographical material at the end of each chapter is excellent, not only from a historical perspective, but because it is valuable for researchers in acquiring a good perspective of the MDP research potential." —Zentralblatt fur Mathematik ". . . it is of great value to advanced-level students, researchers, and professional practitioners of this field to have now a complete volume (with more than 600 pages) devoted to this topic. . . . Markov Decision Processes: Discrete Stochastic Dynamic Programming represents an up-to-date, unified, and rigorous treatment of theoretical and computational aspects of discrete-time Markov decision processes." —Journal of the American Statistical Association