Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
483024 | European Journal of Operational Research | 2007 | 11 Pages |
Abstract
In this paper, we consider the uncapacitated single-item dynamic lotsizing problem with stochastic period demands and backordering. We present a model formulation that minimizes the setup and holding costs with respect to a constraint on the probability that the inventory at the end of any period does not become negative (α service level) and, alternatively, to a fill rate constraint (β service level). In contrast to earlier model formulations which consider the cycle α service level (αc) and which approximate the on hand inventory by the net inventory, we include the exact on hand inventory into the model formulation. Therefore, the models are also applicable in situations with very low service levels.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Horst Tempelmeier,