Back to Search
Start Over
An efficient procedure for non-stationary inventory control.
- Source :
-
IIE Transactions . Feb2001, Vol. 33 Issue 2, p83. 7p. 9 Charts. - Publication Year :
- 2001
-
Abstract
- We present an efficient solution method -- Direct Derivative Estimation (DDE) -- for computing optimal order-up-to levels for a discrete time non-stationary inventory control model. We generalize a number of non-stationary inventory control models (which underlie larger models of supply chains) that include forecast updates. seasonality, information sharing, and exchange-rate fluctuations. This procedure is different from the existing ones in that it computes, in a recursive manner, the derivative of the cost function and not the cost function itself. It can also handle a much wider variety of fluctuations in the problem parameters. In our computational testing it was found to be considerably faster than Dynamic Programming and Infinitesimal Perturbation Analysis. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 0740817X
- Volume :
- 33
- Issue :
- 2
- Database :
- Academic Search Index
- Journal :
- IIE Transactions
- Publication Type :
- Academic Journal
- Accession number :
- 4100697
- Full Text :
- https://doi.org/10.1023/A:1007682416719