Publication Type
Journal Article
Version
acceptedVersion
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
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
Citation
SONG, Yuyue and LAU, Hoong Chuin.
A periodic-review inventory model with application to the continuous-review obsolescence problem. (2004). European Journal of Operations Research. 159, (1), 110-120.
Available at: https://ink.library.smu.edu.sg/sis_research/64
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://doi.org/10.1016/s0377-2217(03)00399-0
Included in
Artificial Intelligence and Robotics Commons, Operations Research, Systems Engineering and Industrial Engineering Commons
