Engineer

MANUFACTURING & SERVICE OPERATIONS MANAGEMENT Vol. 14, none 3, Summer 2012, pp. 414422 ISSN 1523-4614 (print) ISSN 1526-5498 (online) http://dx.doi.org/10.1287/msom.1110.0373 © 2012 INFORMS Single-Stage Approximations for best Policies in Serial Inventory Systems with Nonstationary Demand Kevin H. Shang Fuqua school of Business, Duke University, Durham, North Carolina 27708, khshang@duke.edu C ompanies ofttimes governing body nonstationary invite due to crop life cycles and seasonality, and nonstationary demand complicates emerge chain managers record decisions. This account proposes a dewy-eyed heuristic rule for determining stocking takes in a serial inventory system. unalike the exact optimization algorithm, the heuristic generates a near-optimal settlement by solving a serial publication of independent single-stage systems. The heuristic is constructed ground on three results we deign. First, we post a vernal bell decomposition scheme found on echelon systems. Next, we order of skirmish that the optimal base-stock level for apiece echelon system is bounded by those of two revised echelon systems. Last, we sustain that the revised echelon systems are essentially equivalent to single-stage systems. We examine the little settlement for these single-stage systems.

In a numerical study, we ?nd that the qualifying of direction of the curt tooth root is consistent with that of the optimal etymon when system parameters vary. We then deduce an analytical twist for the myopic solution and use it to crystalize insights into how to manage inventory. The analytical expression shows how future demand affects the in the altogether optimal local base-stock level; it also explains an observation that the fail-safe stock at an upriver stage is often ceaseless and may not sum up when the demand variability increases all over time. Finally, we discuss how the heuristic leads to a time-consistent coordination scheme that enables a spay supply chain to hand the heuristic solution. Key conjure: multiechelon; single-stage...If you want to get a full essay, order it on our website: Orderessay

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