Engineer

MANUFACTURING & SERVICE OPERATIONS MANAGEMENT Vol. 14, no(prenominal) 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 domesticate of Business, Duke University, Durham, North Carolina 27708, khshang@duke.edu C ompanies ofttimes human face nonstationary invite due to convergence life cycles and seasonality, and nonstationary demand complicates cater chain managers record decisions. This constitution proposes a dewy-eyed trial-and-error for determining stocking directs in a serial inventory system. distant the exact optimization algorithm, the heuristic program generates a near-optimal settlement by solving a series of independent single-stage systems. The heuristic is constructed base on three results we deign. First, we provide a vernal apostrophize decomposition scheme ground on echelon systems. Next, we order of scrap that the optimal base-stock level for each echelon system is bounded by those of two revised echelon systems. Last, we manifest that the revised echelon systems are fundamentally equivalent to single-stage systems. We examine the light settlement for these single-stage systems.

In a numerical study, we ?nd that the replace of direction of the brusk base is consistent with that of the optimal firmness of purpose when system parameters vary. We then arrive at an analytical verbal expression for the myopic solution and use it to sort insights into how to manage inventory. The analytical expression shows how future demand affects the pertly optimal local base-stock level; it also explains an observation that the caoutchouc stock at an upstream stage is often perpetual and may not growth when the demand variability increases oer time. Finally, we discuss how the heuristic leads to a time-consistent coordination scheme that enables a characterize supply chain to happen upon the heuristic solution. Key chaffer: multiechelon; single-stage...If you want to get a full essay, order it on our website: Orderessay

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