An efficient computational method for non-stationary (R,S) inventory policy with service level constraints

M. Dogru, S.A. Tarim, U. Ozen, R. Rossi

Research output: Chapter in Book/Report/Conference proceedingAbstract

Abstract

This paper provides an efficient computational approach to solve a mixed integer programming (MIP) model developed for calculating the parameters of an (R,S) policy in a finite horizon with non-stationary stochastic demand and service level constraints. Given the replenishment periods, we characterize the optimal order-up-to levels for the MIP model and use it to guide the development of a relaxed MIP model, which can be solved in polynomial time. Extensive numerical tests show that our method dominates the MIP solution approach and can handle real-life size problems in trivial time.
Original languageEnglish
Title of host publication24th European conference on operational research, July 11-14 2010, Lisbon, Portugal
Place of PublicationLisbon
Pages266
Publication statusPublished - 2010
EventEURO XXIV -
Duration: 11 Jul 201014 Jul 2010

Conference

ConferenceEURO XXIV
Period11/07/1014/07/10

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    Dogru, M., Tarim, S. A., Ozen, U., & Rossi, R. (2010). An efficient computational method for non-stationary (R,S) inventory policy with service level constraints. In 24th European conference on operational research, July 11-14 2010, Lisbon, Portugal (pp. 266).