Are Base-Stock Policies Optimal in Inventory Problems with Multiple Delivery Modes?

Are Base-Stock Policies Optimal in Inventory Problems with Multiple Delivery Modes?

We present a periodic review inventory model with multiple delivery modes. While base-stock policies are optimal for one or two consecutive delivery modes, they are not so otherwise. For multiple consecutive delivery modes, we show that only the fastest two modes have optimal base stocks, and provid...

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Veröffentlicht in:Operations research 2006-07, Vol.54 (4), p.801-807
Hauptverfasser: Feng, Qi, Sethi, Suresh P, Yan, Houmin, Zhang, Hanqin
Format: Artikel
Sprache:eng
Schlagworte:
Analysis
Applied sciences
Carrying costs
Cost allocation methods
Cost functions
Counterexamples
Deliveries
Exact sciences and technology
Forecasting models
Inventories
Inventory
Inventory control
Inventory control, production control. Distribution
inventory/production: uncertainty, multiple delivery modes, base-stock policies
Manufacturing industry
Methods
Operational research and scientific management
Operational research. Management science
Operations research
Optimal policy
Optimization
Production management
Service introduction
Technical Note
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Beschreibung
Zusammenfassung:We present a periodic review inventory model with multiple delivery modes. While base-stock policies are optimal for one or two consecutive delivery modes, they are not so otherwise. For multiple consecutive delivery modes, we show that only the fastest two modes have optimal base stocks, and provide a simple counterexample to show that the remaining ones do not. We investigate why the base-stock policy is or is not optimal in different situations. This note is an abridged version of Feng et al. (2006).
ISSN:0030-364X
1526-5463
DOI:10.1287/opre.1050.0271