Publication Type

Journal Article

Publication Date

2-2017

Abstract

We consider a finite-horizon single-product periodic-review inventory managementproblem with demand distribution uncertainty. We formulate the problemas a dynamic program and prove the existence of an optimal (s, S) policy. Thecorresponding dynamic robust counterpart models are then developed for thebox and the ellipsoid uncertainty sets. These counterpart models are transformedinto tractable linear and second-order cone programs, respectively. Weillustrate the effectiveness and practicality of the proposed robust optimizationapproaches through a numerical study.

Keywords

inventory, periodic-review (s, S) policy, robust optimization, demand distribution uncertainty, dynamic programming

Discipline

Operations and Supply Chain Management

Research Areas

Operations Management

Publication

European Journal of Operational Research

ISSN

0377-2217

Identifier

10.1016/j.ejor.2017.02.027

Publisher

Elsevier

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1016/j.ejor.2017.02.027

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