New analytical bounds on the average undershoot in an infinite horizon (s, S) inventory system

Chun-Hung Chiu; Ngai-Hang Z. Leung; Karthik Natarajan

doi:10.1016/j.orl.2012.11.011

Author(s)

Chun-Hung Chiu
Ngai-Hang Z. Leung
Karthik Natarajan

Detail(s)

Original language	English
Pages (from-to)	67-73
Journal / Publication	Operations Research Letters
Volume	41
Issue number	1
Publication status	Published - Jan 2013
Externally published	Yes

Link(s)

DOI	DOI https://doi.org/10.1016/j.orl.2012.11.011 Final Published version
	Check@CityULib
Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-84870658720&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(f5c45b4c-b6c4-4078-b21c-f3caf404192c).html

Abstract

We provide new bounds on the average undershoot in an infinite horizon (s,S) inventory system with i.i.d demands with known moments up to order three. The two moment bound improves on Lorden's bound [G. Lorden, On Excess over the Boundary, Annals of Mathematical Statistics 41 (2) (1970) 520-527] for small values of S-s and low values of the coefficient of variation. The three moment bound provides further improvement for negatively skewed demands. The bounds are sharp and shown to be useful when the asymptotically tight two moment approximation fails. © 2012 Elsevier B.V. All rights reserved.

Research Area(s)

Inventory, Moment bounds, Semidefinite program

Citation Format(s)

[ RIS ] [ BibTeX ]

New analytical bounds on the average undershoot in an infinite horizon (s, S) inventory system. / Chiu, Chun-Hung; Leung, Ngai-Hang Z.; Natarajan, Karthik.
In: Operations Research Letters, Vol. 41, No. 1, 01.2013, p. 67-73.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review

Chiu, C-H, Leung, N-HZ & Natarajan, K 2013, 'New analytical bounds on the average undershoot in an infinite horizon (s, S) inventory system', Operations Research Letters, vol. 41, no. 1, pp. 67-73. https://doi.org/10.1016/j.orl.2012.11.011

Chiu, C-H., Leung, N-H. Z., & Natarajan, K. (2013). New analytical bounds on the average undershoot in an infinite horizon (s, S) inventory system. Operations Research Letters, 41(1), 67-73. https://doi.org/10.1016/j.orl.2012.11.011

Chiu C-H, Leung N-HZ, Natarajan K. New analytical bounds on the average undershoot in an infinite horizon (s, S) inventory system. Operations Research Letters. 2013 Jan;41(1):67-73. doi: 10.1016/j.orl.2012.11.011

Chiu, Chun-Hung ; Leung, Ngai-Hang Z. ; Natarajan, Karthik. / New analytical bounds on the average undershoot in an infinite horizon (s, S) inventory system. In: Operations Research Letters. 2013 ; Vol. 41, No. 1. pp. 67-73.