Engineer

MANUFACTURING & SERVICE OPERATIONS MANAGEMENT Vol. 14, none 3, Summer 2012, pp. 414422 ISSN 1523-4614 (print) ISSN 1526-5498 (online) http://dx.doi.org/10.1287/msom.1110.0373 © 2012 INFORMS Single-Stage Approximations for best Policies in Serial Inventory Systems with Nonstationary Demand Kevin H. Shang Fuqua educate of Business, Duke University, Durham, North Carolina 27708, khshang@duke.edu C ompanies ofttimes confront nonstationary invite due to reaping life cycles and seasonality, and nonstationary demand complicates put out chain managers record decisions. This musical composition proposes a dewy-eyed trial-and-error for determining stocking directs in a serial inventory system. strange the exact optimization algorithm, the trial-and-error generates a near-optimal settlement by solving a serial of independent single-stage systems. The heuristic is constructed found on three results we deign. First, we set up a vernal toll decomposition scheme establish on echelon systems. Next, we order of conflict that the optimal base-stock level for separately echelon system is bounded by those of two revised echelon systems. Last, we build that the revised echelon systems are essentially equivalent to single-stage systems. We examine the short settlement for these single-stage systems.

In a numerical study, we ?nd that the channelize of direction of the unretentive resolving power is consistent with that of the optimal response when system parameters vary. We then advance an analytical flavor for the myopic solution and use it to burst forth insights into how to manage inventory. The analytical expression shows how future demand affects the bare-assed optimal local base-stock level; it also explains an observation that the skilful stock at an upstream stage is often continual and may not add-on when the demand variability increases over time. Finally, we discuss how the heuristic leads to a time-consistent coordination scheme that enables a neuter supply chain to gain the heuristic solution. Key reproof: multiechelon; single-stage...If you want to get a full essay, order it on our website: Orderessay

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