Single-Stage Approximations for Optimal Policies in Serial Inventory Systems with Nonstationary Demand

@article{Shang2012SingleStageAF,
  title={Single-Stage Approximations for Optimal Policies in Serial Inventory Systems with Nonstationary Demand},
  author={Kevin H. Shang},
  journal={Manufacturing & Service Operations Management},
  year={2012},
  volume={14},
  pages={414-422}
}
C often face nonstationary demand due to product life cycles and seasonality, and nonstationary demand complicates supply chain managers’ inventory decisions. This paper proposes a simple heuristic for determining stocking levels in a serial inventory system. Unlike the exact optimization algorithm, the heuristic generates a near-optimal solution by solving a series of independent single-stage systems. The heuristic is constructed based on three results we derive. First, we provide a new cost… CONTINUE READING

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