Journal ArticleDOI
A survey of lower bounding methodologies for production/inventory models
TLDR
In this article, a review of lower bounding methodologies for lot-sizing production/inventory models is performed for both dynamic discrete time demand and continuous review, constant demand situations, where lower bounds are an essential ingredient in the evaluation of heuristics when optima are unknown or too computationally complex to comfortably evaluate.Abstract:
A review is undertaken of lower bounding methodologies for lot-sizing production/inventory models. This is done for both dynamic discrete time demand and continuous review, constant demand situations. The view is taken that lower bounds are an essential ingredient in the evaluation of heuristics when optima are unknown or too computationally complex to comfortably evaluate. Several directions of future research are suggested.read more
Citations
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Journal ArticleDOI
Lower Bounds for Multi-Echelon Stochastic Inventory Systems
Fangruo Chen,Yu-Sheng Zheng +1 more
TL;DR: In this article, lower bounds on the minimum cost of managing certain production-distribution networks with setup costs at all stages and stochastic demands were established through novel cost-allocation schemes.
Journal ArticleDOI
Analysis of relaxations for the multi-item capacitated lot-sizing problem
Wun-Hwa Chen,J.-H. Thizy +1 more
TL;DR: In this paper, the authors show that the multi-item capacitated lot-sizing problem is strongly NP-hard and compare the performance of column generation, column generation and subgradient optimization.
Journal ArticleDOI
Near-Optimal Echelon-Stock ( R , Nq ) Policies in Multistage Serial Systems
Fangruo Chen,Yu-Sheng Zheng +1 more
TL;DR: A numerical study suggests that the heuristic solutions are easy to compute (even for systems with many stages) and are close to optimal and suggests that a traditional approach for determining the order quantities can be seriously suboptimal.
Journal ArticleDOI
Efficient, effective lot sizing for multistage production systems
TL;DR: This work proposes two new cluster-based heuristics for external demand for a multistage, multiproduct production/inventory system in discrete time, and shows that their performance is very insensitive to the size of the system and to other input parameters.
Journal ArticleDOI
A Simple Heuristic for Serial Inventory Systems with Fixed Order Costs
TL;DR: A heuristic for finding base order quantities for stochastic inventory models and in a numerical study, it is shown that the heuristic is near optimal.
References
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Journal ArticleDOI
Optimal Policies for a Multi-Echelon Inventory Problem
Andrew J. Clark,Herbert E. Scarf +1 more
TL;DR: The problem of determining optimal purchasing quantities in a multi-installation model of this type, which arises when there are several installations, is considered.
Journal ArticleDOI
A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System---A Network Approach
TL;DR: In this article, two dynamic economic lot size production systems are analyzed, one being a single product model with backlogging and the second a multi-echelon model, where the objective is to find a production schedule that minimizes the total production and inventory costs.
Journal ArticleDOI
Approximations of Dynamic, Multilocation Production and Inventory Problems
Awi Federgruen,Paul Zipkin +1 more
Abstract: Consider a central depot or plant which supplies several locations experiencing random demands. Orders are placed or production is initiated periodically by the depot. The order arrives after a fixed lead time, and is then allocated among the several locations. The depot itself does not hold inventory. The allocations are finally received at the demand points after another lag. Unfilled demand at each location is backordered. Linear costs are incurred at each location for holding inventory and for backorders. Also, costs are assessed for orders placed by the depot. The object is to minimize the expected total cost of the system over a finite number of time periods.
This system gives rise to a dynamic program with a state space of very large dimension. We show that this model can be systematically approximated by a single-location inventory problem. All the qualitative and quantitative results for such problems can then be applied.
Journal ArticleDOI
Optimal Inventory Policies for Assembly Systems Under Random Demands
TL;DR: Under an assumption on the initial stock levels that should appear in the long run Long-Run Balance, it is demonstrated that the assembly system can be remodeled as a series system and simple reorder policies are optimal and the computational requirements are drastically reduced.
Journal ArticleDOI
Computational complexity of uncapacitated multi-echelon production planning problems
TL;DR: In this paper, the authors investigated the computational complexity of the problem for all commonly studied product structures, i.e., the single item, the serial system, the assembly system, one-warehouse-N-retailer system, distribution system, joint replenishment system, and the general production-distribution system.
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