Work

The benefit of receding horizon control: Near-optimal policies for stochastic inventory control

Year: 2019

Type: article

Abstract: In this paper we address the single-item, single-stocking point, non-stationary stochastic lot-sizing problem under backorder costs. It is well known that the (s, S) policy provides the optimal control for such inventory systems. However the computational difficulties and the nervousness inherent in (s, S) paved the way for the development of various near-optimal inventory control policies. We provide a systematic comparison of these policies and present their expected cost performances. We further show that when these policies are used in a receding horizon framework the cost performances improve considerably and differences among policies become insignificant.

Source: Omega

DOI: 10.1016/j.omega.2019.07.007

Authors: Gozdem Dural-Selcuk, Roberto Rossi, Onur A. Kilic, S. Armagan Tarim

Institutions: Atilim University, University of Edinburgh, University of Groningen, University College Cork

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $1,800

OpenAlex ID: W2963531086

FWCI: 1.331

Cites: 48

Cited by: 14

Related to: 10