Publication Type

Journal Article

Publication Date

11-2004

Abstract

In this paper we consider a stochastic-demand periodic-review inventory model with sudden obsolescence. We characterize the structure of the optimal policy and propose a dynamic programming algorithm for computing its parameters. We then utilize this algorithm to approximate the solution to the continuous-review sudden obsolescence problem with general obsolescence distribution. We prove convergence of our approximation scheme, and demonstrate it numerically against known closed-form solutions of special cases.

Keywords

Inventory model, Sudden obsolescence, Continuous-review, Periodic-review

Discipline

Artificial Intelligence and Robotics | Operations Research, Systems Engineering and Industrial Engineering

Research Areas

Intelligent Systems and Decision Analytics

Publication

European Journal of Operations Research

Volume

159

Issue

1

First Page

110

Last Page

120

ISSN

0377-2217

Identifier

10.1016/s0377-2217(03)00399-0

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/s0377-2217(03)00399-0