Technical Note—Constant-Order Policies for Lost-Sales Inventory Models with Random Supply Functions: Asymptotics and Heuristic

Published Online:https://doi.org/10.1287/opre.2019.1971

References

  • Arts J, Levi R, van Houtum GJ, Zwart B (2015) Base-stock policies for lost-sales models: Aggregation and asymptotics. Accessed September 18, 2017, https://pure.tue.nl/ws/files/10242908/wp_491.pdf.Google Scholar
  • Asmussen S (2003) Applied Probability and Queues, 2nd ed. (Springer, Berlin).Google Scholar
  • Bijvank M, Vis IFA (2011) Lost-sales inventory theory: A review. Eur. J. Oper. Res. 215(1):1–13.CrossrefGoogle Scholar
  • Bollapragada S, Morton TE (1999) Myopic heuristics for the random yield problem. Oper. Res. 47(5):713–722.LinkGoogle Scholar
  • Chao X, Chen H, Zheng S (2008) Joint replenishment and pricing decisions in inventory systems with stochastically dependent supply capacity. Eur. J. Oper. Res. 191(1):142–155.CrossrefGoogle Scholar
  • Chen X, Gao X, Pang Z (2018) Preservation of structural properties in optimization with decisions truncated by random variables and its applications. Oper. Res. 66(2):340–357.LinkGoogle Scholar
  • Chen X, Stolyar A, Xin L (2019) Asymptotic optimality of constant-order policies in joint pricing and inventory control models. Preprint, submitted May 9, https://dx.doi.org/10.2139/ssrn.3375203.Google Scholar
  • Ciarallo FW, Akella R, Morton TE (1994) A periodic review, production planning model with uncertain capacity and uncertain demand – optimality of extended myopic policies. Management Sci. 40(3):320–332.LinkGoogle Scholar
  • Dada M, Petruzzi NC, Schwarz LB (2007) A newsvendor’s procurement problem when suppliers are unreliable. Manufacturing Service Oper. Management 9(1):9–32.LinkGoogle Scholar
  • Feng Q (2010) Integrating dynamic pricing and replenishment decisions under supply capacity uncertainty. Management Sci. 56(12):2154–2172.LinkGoogle Scholar
  • Feng Q, Shanthikumar JG (2018) Supply and demand functions in inventory models. Oper. Res. 66(1):77–91.LinkGoogle Scholar
  • Folland GB (1999) Real Analysis: Modern Techniques and Their Applications, 2nd ed. (John Wiley & Sons, New York).Google Scholar
  • Goldberg DA, Katz-Rogozhnikov DA, Lu Y, Sharma M, Squillante MS (2016) Asymptotic optimality of constant-order policies for lost sales inventory models with large lead times. Math. Oper. Res. 41(3):898–913.LinkGoogle Scholar
  • Henig M, Gerchak Y (1990) The structure of periodic review policies in the presence of random yield. Oper. Res. 38(4):634–643.LinkGoogle Scholar
  • Huh WT, Nagarajan M (2010) Linear inflation rules for the random yield problem: Analysis and computations. Oper. Res. 58(1):244–251.LinkGoogle Scholar
  • Huh WT, Janakiraman G, Nagarajan M (2011) Average cost single-stage inventory models: An analysis using a vanishing discount approach. Oper. Res. 59(1):143–155.LinkGoogle Scholar
  • Huh WT, Janakiraman G, Muckstadt JA, Rusmevichientong P (2009) Asymptotic optimality of order-up-to policies in lost sales inventory systems. Management Sci. 55(3):404–420.LinkGoogle Scholar
  • Inderfurth K, Kiesmüller GP (2015) Exact and heuristic linear-inflation policies for an inventory model with random yield and arbitrary lead times. Eur. J. Oper. Res. 245(1):109–120.CrossrefGoogle Scholar
  • Janakiraman G, Muckstadt JA (2004) Inventory control in directed networks: a note on linear costs. Oper. Res. 52(3):491–495.LinkGoogle Scholar
  • Janakiraman G, Roundy R (2004) Lost-sales problems with stochastic lead times: Convexity results for base-stock policies. Oper. Res. 52(5):795–803.LinkGoogle Scholar
  • Kingman JFC (1962) Some inequalities for the queue GI/G/1. Biometrika 49(3-4):315–324.CrossrefGoogle Scholar
  • Marshall KT (1968) Some inequalities in queueing. Oper. Res. 16(3):651–668.LinkGoogle Scholar
  • Reiman MI (2004) A new and simple policy for the continuous review lost sales inventory model. Working paper, Bell Labs, Lucent Technologies, Murray Hill, NJ.Google Scholar
  • Shaked M, Shanthikumar JG (2006) Stochastic Orders, 1st ed. (Springer, New York).Google Scholar
  • Wang Y, Gerchak Y (1996) Periodic review production models with variable capacity, random yield, and uncertain demand. Management Sci. 42(1):130–137.LinkGoogle Scholar
  • Wei L, Jasin S, Xin L (2018) On a deterministic approximation of inventory systems with sequential probabilistic service level constraints. Preprint, submitted February 12, https://dx.doi.org/10.2139/ssrn.3114348.Google Scholar
  • Xin L (2019) Understanding the performance of capped base-stock policies in lost-sales inventory models. Preprint, submitted April 10, https://dx.doi.org/10.2139/ssrn.3357241.Google Scholar
  • Xin L, Goldberg DA (2016) Optimality gap of constant-order policies decays exponentially in the lead time for lost sales models. Oper. Res. 64(6):1556–1565.LinkGoogle Scholar
  • Xin L, Goldberg DA (2018) Asymptotic optimality of tailored base-surge policies in dual-sourcing inventory systems. Management Sci. 64(1):437–452.LinkGoogle Scholar
  • Xin L, He L, Bewli J, Bowman J, Feng H, Qin Z (2017) On the performance of tailored base-surge policies: Theory and application at walmart.com. Preprint, submitted December 20, https://ssrn.com/abstract=3090177.Google Scholar
  • Zipkin P (2008) Old and new methods for lost-sales inventory systems. Oper. Res. 56(5):1256–1263.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.