Computing the non-stationary replenishment cycle inventory policy under stochastic supplier lead-times

Roberto Rossi, S Armagan Tarim, Brahim Hnich, Steven Prestwich

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

In this paper we address the general multi-period production/inventory problem
with non-stationary stochastic demand and supplier lead time under service-level
constraints. A replenishment cycle policy (Rn,Sn) is modeled, where Rn is the n-th
replenishment cycle length and Sn is the respective order-up-to-level. Initially we
extend an existing formulation for this policy in a way to incorporate a dynamic
deterministic lead time with the assumption of order cross-over. Following this, we
extend the model to incorporate a non-stationary stochastic lead time. Within a
constraint programming framework, a dedicated constraint implementing a hybrid
approach is proposed to compute replenishment cycle policy parameters.
Original languageEnglish
Pages (from-to)180-189
Number of pages10
JournalInternational Journal of Production Economics
Issue number1
Early online date26 May 2010
Publication statusPublished - Sept 2010

Keywords / Materials (for Non-textual outputs)

  • Inventory control
  • Demand uncertainty
  • Supplier lead-time uncertainty
  • Stochastic constraint programming
  • Global chance-constraints


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