On computational procedures for Value Iteration in inventory control

E.M.T. Hendrix, Cleo Kortenhorst, G. Ortega

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Dynamic programming (DP) is often seen in inventory control to lead to optimal ordering policies. When considering stationary demand, Value Iteration (VI) may be used to derive the best policy. In this paper, our focus is on the computational procedures to implement VI. Practical implementation requires bounding carefully the state space and demand in an adequate way. We illustrate with small cases the challenge of the implementation. We also show that handling service level constraints is not straightforward from a DP point of view. Moreover, when taking the age distribution into account for perishable products, the curse of dimensionality provides an additional challenge.
Original languageEnglish
Pages (from-to)1484-1489
JournalIFAC-PapersOnLine
Volume52
Issue number13
DOIs
Publication statusPublished - Dec 2019

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Inventory control
Dynamic programming

Keywords

  • Mathematical Approaches for SchedulingStochastic ProcessesInventory controlValue IterationService levelPoisson

Cite this

Hendrix, E.M.T. ; Kortenhorst, Cleo ; Ortega, G. / On computational procedures for Value Iteration in inventory control. In: IFAC-PapersOnLine. 2019 ; Vol. 52, No. 13. pp. 1484-1489.
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On computational procedures for Value Iteration in inventory control. / Hendrix, E.M.T.; Kortenhorst, Cleo; Ortega, G.

In: IFAC-PapersOnLine, Vol. 52, No. 13, 12.2019, p. 1484-1489.

Research output: Contribution to journalArticleAcademicpeer-review

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