A cash constrained single item stochastic lot-sizing problem

Zhen Chen, Roberto Rossi

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract / Description of output

We investigate a dynamic inventory management problem where a cash-constrained small retailer periodically purchases an item from a supplier and sells it to the customers with non-stationary demands. At each period, the retailer's available cash restricts the maximum inventory level that it can replenish. There exists a fixed ordering cost for the retailer when ordering and this results in a stochastic lot-sizing problem. We build a stochastic dynamic programming model for this problem and find some characteristics of the optimal ordering pattern.
Original languageEnglish
Title of host publicationProceedings of the 9th IFAC INFORMS Conference
Subtitle of host publicationManufacturing Modelling, Management and Control - MIM 2019
Pages1479-1483
DOIs
Publication statusE-pub ahead of print - 25 Dec 2019

Publication series

NameIFAC-PapersOnLine
PublisherElsevier
Number13
Volume52
ISSN (Print)2405-8963

Keywords / Materials (for Non-textual outputs)

  • inventory control
  • stochastic lot sizing
  • non stationary demand
  • cash constraint

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