Good and bad news about the (S, T) policy
This paper studies the optimization of the (S, T) inventory policy, where T is the replenishment interval and S is the order-up-to level. First, we demonstrate that the previously established joint convexity of the long-run average cost is false. Hence, the optimization is not straightforward. We th...
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sg-ntu-dr.10356-1007912023-05-19T06:44:41Z Good and bad news about the (S, T) policy Liu, Fang Song, Jing-Sheng Nanyang Business School Business This paper studies the optimization of the (S, T) inventory policy, where T is the replenishment interval and S is the order-up-to level. First, we demonstrate that the previously established joint convexity of the long-run average cost is false. Hence, the optimization is not straightforward. We then point out that the joint convexity concept depends on whether S and T are continuous or discrete variables, and in some situations it may not even be well defined. Nonetheless, we are able to identify several useful properties of the cost function, such as submodularity and coordinatewise convexity. Based on these properties, we develop efficient algorithms to compute the optimal policy for continuous and discrete demands. 2013-12-16T03:06:29Z 2019-12-06T20:28:19Z 2013-12-16T03:06:29Z 2019-12-06T20:28:19Z 2012 2012 Journal Article Liu, F., & Song, J.-S. (2012). Good and bad news about the (S, T) policy. Manufacturing & service operations management, 14(1), 42-49. 1523-4614 https://hdl.handle.net/10356/100791 http://hdl.handle.net/10220/18242 10.1287/msom.1110.0353 en Manufacturing & service operations management © 2012 INFORMS. |
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Business Liu, Fang Song, Jing-Sheng Good and bad news about the (S, T) policy |
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This paper studies the optimization of the (S, T) inventory policy, where T is the replenishment interval and S is the order-up-to level. First, we demonstrate that the previously established joint convexity of the long-run average cost is false. Hence, the optimization is not straightforward. We then point out that the joint convexity concept depends on whether S and T are continuous or discrete variables, and in some situations it may not even be well defined. Nonetheless, we are able to identify several useful properties of the cost function, such as submodularity and coordinatewise convexity. Based on these properties, we develop efficient algorithms to compute the optimal policy for continuous and discrete demands. |
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Nanyang Business School |
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Nanyang Business School Liu, Fang Song, Jing-Sheng |
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Liu, Fang Song, Jing-Sheng |
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Liu, Fang |
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Good and bad news about the (S, T) policy |
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Good and bad news about the (S, T) policy |
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Good and bad news about the (S, T) policy |
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Good and bad news about the (S, T) policy |
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Good and bad news about the (S, T) policy |
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good and bad news about the (s, t) policy |
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2013 |
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https://hdl.handle.net/10356/100791 http://hdl.handle.net/10220/18242 |
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