Name
Title | ||
|---|---|---|
Inventory control with an order-time constraint: optimality, uniqueness and significance |
Abstract | ||
|---|---|---|
This paper analyzes a stochastic inventory problem with an order-time constraint that restricts the times at which a manufacturer
places new orders to a supplier. This constraint stems from the limited upstream capacity in a supply chain, such as production
capacity at a supplier or transportation capacity between a supplier and a manufacturer. Consideration of limited upstream
capacity extends the classical inventory literature that unrealistically assumes infinite supplier/transporter capacity. But
this consideration increases the complexity of the problem. We study the constraint under a Poisson demand process and allow
for a fixed ordering cost. In presence of the constraint, we establish the optimality of an (s,S) policy under both the discounted and average cost objectives. Under the average cost objective, we show the uniqueness of
the order-up-to level S. We numerically compare our model with the classical unconstrained model. We report significant savings in costs that can
be achieved by using our model when the order time is constrained. |
Year | DOI | Venue |
|---|---|---|
2010 | 10.1007/s10479-010-0791-1 | Annals OR |
Keywords | Field | DocType |
inventory control,supply chain | Uniqueness,Mathematical optimization,Average cost,Inventory control,Supply chain,Poisson distribution,Time constraint,Mathematics | Journal |
Volume | Issue | ISSN |
181 | 1 | 1572-9338 |
Citations | PageRank | References |
4 | 0.51 | 14 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Alain Bensoussan | 1 | 367 | 170.17 |
| Lama Moussawi-Haidar | 2 | 22 | 3.35 |
| Metin Çakanyildirim | 3 | 150 | 12.59 |