On a CP approach to solve a MINLP inventory model

Roberto Rossi, S Armagan Tarim, Brahim Hnich, Steven Prestwich, Eligius M.T. Hendrix

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

Abstract

One of the most important policies adopted in inventory control is the replenishment cycle policy. Such a policy provides an effective means of dampening planning instability and coping with demand uncertainty. We describe a constraint programming approach for computing optimal replenishment cycle policy parameters under non-stationary stochastic demand, ordering, holding and shortage costs. Our solution approach exploits the convexity of the cost-function to dynamically compute during search the cost associated with a given decision variable assignment. By using our
model we gauge the quality of an existing approximate mixed integer linear programming approach that exploits a piecewise linear approximation for the complex cost function. Furthermore, our computational experience shows that our approach can solve realistic instances in a fraction of a second.
Original languageEnglish
Title of host publication Proceedings of the Toulouse Global Optimization workshop (TOGO 2010)
Subtitle of host publicationENSEEIHT and Ecole Polytechnique
Pages137
Number of pages140
Publication statusPublished - 2010
EventToulouse Global Optimization workshop (TOGO 2010) - Toulouse, France
Duration: 31 Aug 20103 Sep 2010

Conference

ConferenceToulouse Global Optimization workshop (TOGO 2010)
Country/TerritoryFrance
CityToulouse
Period31/08/103/09/10

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