Article ID Journal Published Year Pages File Type
10524214 Operations Research Letters 2005 14 Pages PDF
Abstract
We present a new dynamic programming formulation for the stochastic multi-stage serial inventory system based on the cost of sub-system with fewer stages. A heuristic based on judiciously selected common downstream holding costs requires solving one newsvendor problem per stage. A closed-form approximate upper bound allows for accurate sensitivity analysis.
Keywords
Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
Preview
A new algorithm and a new heuristic for serial supply systems
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