Abstract
One of the most important policies adopted in inventory control is the (R,S) policy (also known as the “replenishment cycle” policy). Under the non-stationary demand assumption the (R,S) policy takes the form (R n ,S n ) where R n denotes the length of the n th replenishment cycle, and S n the corresponding order-up-to-level. Such a policy provides an effective means of damping planning instability and coping with demand uncertainty. In this paper we develop a CP approach able to compute optimal (R n ,S n ) policy parameters under stochastic demand, ordering, holding and shortage costs. The convexity of the cost-function is exploited during the search to compute bounds. We use the optimal solutions to analyze the quality of the solutions provided by an approximate MIP approach that exploits a piecewise linear approximation for the cost function.
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Rossi, R., Tarim, S.A., Hnich, B., Prestwich, S. (2007). Replenishment Planning for Stochastic Inventory Systems with Shortage Cost. In: Van Hentenryck, P., Wolsey, L. (eds) Integration of AI and OR Techniques in Constraint Programming for Combinatorial Optimization Problems. CPAIOR 2007. Lecture Notes in Computer Science, vol 4510. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-72397-4_17
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DOI: https://doi.org/10.1007/978-3-540-72397-4_17
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