News-boy problem with unreliable suppliers

In this paper, we investigate the single-period inventory control problem with an unreliable supplier while facing stochastic demand. We focus on two cases: when the distributions of demand and random yield are known and when only information of mean and variance are available. We derive the mathema...

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Main Author: Yao, Yuetong
Other Authors: Yan Zhenzhen
Format: Final Year Project
Language:English
Published: Nanyang Technological University 2020
Subjects:
Online Access:https://hdl.handle.net/10356/139755
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-1397552023-02-28T23:10:56Z News-boy problem with unreliable suppliers Yao, Yuetong Yan Zhenzhen School of Physical and Mathematical Sciences yanzz@ntu.edu.sg Science::Mathematics In this paper, we investigate the single-period inventory control problem with an unreliable supplier while facing stochastic demand. We focus on two cases: when the distributions of demand and random yield are known and when only information of mean and variance are available. We derive the mathematical formulation for both cases, where maximum entropy and distribution-robust frameworks are considered. Then, we study a dual sourcing model with one perfectly reliable supplier and one unreliable supplier. Optimal sourcing strategies are characterized, and findings and insights are discussed. Lastly, we compare the effectiveness of the distribution-robust approach, maximum entropy approach and sample average approximation approach. It is observed that, in general, the maximum entropy approach outperforms the other two alternatives. Bachelor of Science in Mathematical Sciences 2020-05-21T06:42:33Z 2020-05-21T06:42:33Z 2020 Final Year Project (FYP) https://hdl.handle.net/10356/139755 en application/pdf Nanyang Technological University
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic Science::Mathematics
spellingShingle Science::Mathematics
Yao, Yuetong
News-boy problem with unreliable suppliers
description In this paper, we investigate the single-period inventory control problem with an unreliable supplier while facing stochastic demand. We focus on two cases: when the distributions of demand and random yield are known and when only information of mean and variance are available. We derive the mathematical formulation for both cases, where maximum entropy and distribution-robust frameworks are considered. Then, we study a dual sourcing model with one perfectly reliable supplier and one unreliable supplier. Optimal sourcing strategies are characterized, and findings and insights are discussed. Lastly, we compare the effectiveness of the distribution-robust approach, maximum entropy approach and sample average approximation approach. It is observed that, in general, the maximum entropy approach outperforms the other two alternatives.
author2 Yan Zhenzhen
author_facet Yan Zhenzhen
Yao, Yuetong
format Final Year Project
author Yao, Yuetong
author_sort Yao, Yuetong
title News-boy problem with unreliable suppliers
title_short News-boy problem with unreliable suppliers
title_full News-boy problem with unreliable suppliers
title_fullStr News-boy problem with unreliable suppliers
title_full_unstemmed News-boy problem with unreliable suppliers
title_sort news-boy problem with unreliable suppliers
publisher Nanyang Technological University
publishDate 2020
url https://hdl.handle.net/10356/139755
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