Are base-stock policies optimal in inventory problems with multiple delivery modes?

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

39 Scopus Citations
View graph of relations

Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)801-807
Journal / PublicationOperations Research
Volume54
Issue number4
Publication statusPublished - Jul 2006
Externally publishedYes

Abstract

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). © 2006 INFORMS.

Research Area(s)

  • Base-stock policies, Inventory/production: uncertainty, Multiple delivery modes

Citation Format(s)

Are base-stock policies optimal in inventory problems with multiple delivery modes? / Feng, Qi; Sethi, Suresh P.; Yan, Houmin; Zhang, Hanqin.

In: Operations Research, Vol. 54, No. 4, 07.2006, p. 801-807.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review