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[Untitled]

Authors :
Richard Metters
Source :
IIE Transactions. 29:1017-1029
Publication Year :
1997
Publisher :
Springer Science and Business Media LLC, 1997.

Abstract

We consider a production/inventory problem with stochastic seasonal demand. A scarce resource limits production in each time period, and setup time is negligible. Linear and stationary costs are assessed for production, holding inventory, and stock-outs. The calculation of optimal solutions is difficult so heuristics are used. The heuristics used in business practice are shown to cost an average of 30% above optimal policy costs. A superior heuristic is constructed utilizing an analytic approximation for optimal policies that costs an average of 2% over optimal policy costs.

Details

ISSN :
0740817X
Volume :
29
Database :
OpenAIRE
Journal :
IIE Transactions
Accession number :
edsair.doi...........ad9499a878db8197bb598c5d1a4195c4
Full Text :
https://doi.org/10.1023/a:1018508621162