The benefit of receding horizon control: Near-optimal policies for stochastic inventory control |
| |
Institution: | 1. Industrial Engineering, Atilim University, Ankara, Turkey;2. Business School, University of Edinburgh, Edinburgh, UK;3. Faculty of Economics and Business, University of Groningen, Groningen, the Netherlands;4. Cork University Business School, University College Cork, Ireland |
| |
Abstract: | In this paper we address the single-item, single-stocking point, non-stationary stochastic lot-sizing problem under backorder costs. It is well known that the (s, S) policy provides the optimal control for such inventory systems. However the computational difficulties and the nervousness inherent in (s, S) paved the way for the development of various near-optimal inventory control policies. We provide a systematic comparison of these policies and present their expected cost performances. We further show that when these policies are used in a receding horizon framework the cost performances improve considerably and differences among policies become insignificant. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|