Back to Search
Start Over
[Untitled]
- 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