Engineer

MANUFACTURING & SERVICE OPERATIONS MANAGEMENT Vol. 14, No. 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 ruff Policies in Serial Inventory Systems with Nonstationary Demand Kevin H. Shang Fuqua School of Business, Duke University, Durham, northwesterly Carolina 27708, khshang@duke.edu C ompanies ofttimes face nonstationary invite due to harvest-home life cycles and seasonality, and nonstationary demand complicates supply chain managers record decisions. This base proposes a dewy-eyed heuristic rule for determining stocking directs in a serial inventory system. Unlike the exact optimization algorithm, the heuristic generates a near-optimal settlement by solving a series of independent single-stage systems. The heuristic is constructed base on three results we deign. First, we try a vernal cost decomposition scheme based on echelon system s. Next, we order of battle that the optimal base-stock level for apiece echelon system is bounded by those of two revised echelon systems. Last, we kick upstairs that the revised echelon systems are basically equivalent to single-stage systems. We examine the ill-considered settlement for these single-stage systems.

In a numerical study, we ?nd that the diverge of direction of the nearsighted etymon is consistent with that of the optimal solution when system parameters vary. We then derive an analytical normal for the myopic solution and use it to crystalise insights into how to manage inventory. The analyt ical expression shows how future demand affe! cts the new optimal local base-stock level; it also explains an observation that the safe stock at an upstream stage is often invariable and may not growth when the demand variability increases oer time. Finally, we discuss how the heuristic leads to a time-consistent coordination scheme that enables a modify supply chain to get to the heuristic solution. Key lecture: multiechelon; single-stage...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay