Work

Approximated Dynamic Programming for Production and Inventory Planning Problem in Cold Rolling Process of Steel Production

Year: 2024

Type: article

Abstract: We study a multi-product production and inventory planning problem with uncertain demand in the cold rolling stage of steel production processes. The problem is to determine the production amount of each product in each planning period so that the sum of production, inventory holding, and backorder costs is minimized. We first formulate it into a Markov decision process (MDP) model, considering dynamic demand. Aiming at the proposed large-scale MDP model, we develop the improved Approximated Dynamic Programming (ADP) algorithms, which are composed of the reformulation and the approximation functions for the value function in MDP. Linear and two quadratic approximate functions are proposed to approximate the value function. Numerical experiments show the optimal gaps of the different approximation methods and illustrate the efficiency of the proposed ADP methods.

Source: Mathematics

DOI: 10.3390/math12243922

Authors: Jing Wu, Lijie Su, Gongshu Wang, Yang Yang

Institutions: Shandong Huayu University of Technology, Northeastern University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,955

Funders: National Natural Science Foundation of China, Higher Education Discipline Innovation Project