Publication Type
Journal Article
Version
Preprint
Publication Date
9-2017
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
Volume
261
Issue
3
First Page
880
Last Page
892
ISSN
0377-2217
Identifier
10.1016/j.ejor.2017.02.027
Publisher
Elsevier
Citation
QIU, Ruozhen; SUN, Minghe; and LIM, Yun Fong.
Optimizing (s, S) policies for multi-period inventory models with demand distribution uncertainty: Robust dynamic programming approaches. (2017). European Journal of Operational Research. 261, (3), 880-892. Research Collection Lee Kong Chian School Of Business.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5110
Copyright Owner and License
Authors
Creative Commons 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