TY - JOUR
T1 - Peeling layers of an onion
T2 - Inventory model with multiple delivery modes and forecast updates
AU - Sethi, S. P.
AU - Yan, H.
AU - Zhang, H.
PY - 2001/2
Y1 - 2001/2
N2 - This paper is concerned with a periodic review inventory system with fast and slow delivery modes and regular demand forecast updates. At the beginning of each period, on-hand inventory and demand information are updated. At the same time, decisions on how much to order using fast and slow delivery modes are made. Fast and slow orders are delivered at the end of the current and the next periods, respectively. It is shown that there exists an optimal Markov policy and that it is a modified base-stock policy.
AB - This paper is concerned with a periodic review inventory system with fast and slow delivery modes and regular demand forecast updates. At the beginning of each period, on-hand inventory and demand information are updated. At the same time, decisions on how much to order using fast and slow delivery modes are made. Fast and slow orders are delivered at the end of the current and the next periods, respectively. It is shown that there exists an optimal Markov policy and that it is a modified base-stock policy.
KW - Base-stock policy
KW - Forecast revisions
KW - Inventory models with multiple delivery modes
KW - Stochastic optimization
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UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-0035529802&origin=recordpage
U2 - 10.1023/A:1014289032243
DO - 10.1023/A:1014289032243
M3 - RGC 21 - Publication in refereed journal
SN - 0022-3239
VL - 108
SP - 253
EP - 281
JO - Journal of Optimization Theory and Applications
JF - Journal of Optimization Theory and Applications
IS - 2
ER -