Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
476975 | European Journal of Operational Research | 2011 | 7 Pages |
We consider the simultaneous design and operation of remnant inventory supply chains. Remnant inventory is generated when demand for various lengths of a product may be satisfied by existing inventory, or by cutting a large piece into smaller pieces. We formulate our problem as a two-stage stochastic mixed-integer program. In solving our stochastic program, we enhance the standard L-shaped method in two ways. Our computational experiments demonstrate that these enhancements are effective, dramatically reducing the solution time for large instances.
► We consider the simultaneous design and operation of a remnant inventory supply chain. ► The problem is formulated as a two-stage stochastic program. ► Enhancements to the L-shaped method are developed. ► Computational results are provided.