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

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

doi:10.1016/j.ijpe.2010.05.011

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 journal › Article › peer-review

Abstract

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 language	English
Pages (from-to)	180-189
Number of pages	10
Journal	International Journal of Production Economics
Volume	127
Issue number	1
Early online date	26 May 2010
DOIs	https://doi.org/10.1016/j.ijpe.2010.05.011
Publication status	Published - 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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10.1016/j.ijpe.2010.05.011

Computing the non-stationary replenishment cycle inventory policy under stochastic supplier lead-times
© Rossi, R., Tarim, S. A., Hnich, B., & Prestwich, S. (2010). Computing the non-stationary replenishment cycle inventory policy under stochastic supplier lead-times. International Journal of Production Economics, 127(1), 180-189. 10.1016/j.ijpe.2010.05.011
Submitted manuscript, 263 KB

http://www.sciencedirect.com/science/article/pii/S092552731000191X

Cite this

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title = "Computing the non-stationary replenishment cycle inventory policy under stochastic supplier lead-times",

abstract = "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.",

keywords = "Inventory control, Demand uncertainty, Supplier lead-time uncertainty, Stochastic constraint programming, Global chance-constraints",

author = "Roberto Rossi and Tarim, \{S Armagan\} and Brahim Hnich and Steven Prestwich",

year = "2010",

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AU - Hnich, Brahim

AU - Prestwich, Steven

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AB - 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.

KW - Inventory control

KW - Demand uncertainty

KW - Supplier lead-time uncertainty

KW - Stochastic constraint programming

KW - Global chance-constraints

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DO - 10.1016/j.ijpe.2010.05.011

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SP - 180

EP - 189

JO - International Journal of Production Economics

JF - International Journal of Production Economics

IS - 1

ER -

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

Abstract

Keywords / Materials (for Non-textual outputs)

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

Abstract

Keywords / Materials (for Non-textual outputs)

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Veg-i-trade: Logistic chain modelling and packaging modelling as input for microbiological risk assessment

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