(S,S) Policies for a Dynamic Inventory Model with Stochastic Lead Times.

reportActive / Technical Report | Accession Number: ADA094850 | Open PDF

Abstract:

A stochastic lead time inventory model is analyzed under the assumptions that 1 replenishment orders do not cross in time and 2 the lead time distribution for a given order is independent of the number and sizes of outstanding orders. This study corrects errors in the existing literature on the finite-horizon version of the model and yields an intuitively appealing dynamic program that is nearly identical to one that would apply in a transformed model with all lead times fixed at zero. Hence, many results that have been derived for fixed lead time models generalized easily. Conditions for the optimality of s,S policies are established for both finite and infinite planning horizons. The infinite-horizon model analysis is extended by adapting the fixed lead time results for the efficient computation of optimal and approximately optimal s,S policies. Author

Author(s):
Ehrhardt, Richard
Author Organization(s):
NORTH CAROLINA UNIV AT CHAPEL HILL SCHOOL OF BUSINESS ADMINISTRATION
Descriptive Note:
Technical rept.,
Pagination:
0029

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
TR-17
Contract/Grant Number(s):
N00014-78-C-0467
 Subject Terms
Joint Capability Areas:
JCA_5_Command and Control; JCA_1_Force Support; JCA_5.3_Planning; JCA_1.2_Force Preparation; JCA_1.2.3_Educating; JCA_4.2.4_Assess Global Requirements Resources Capabilities and Risks
Modernization Areas:
Fully Networked C3
Communities of Interest:
Energy and Power Technologies
Descriptor(s):
*INVENTORY CONTROL, *INVENTORY ANALYSIS, POLICIES, MODELS, MODEL THEORY, DYNAMIC PROGRAMMING, STOCHASTIC CONTROL, STOCKPILES, LEAD TIME, REPLENISHMENT
Field(s)/Group(s):
Operations Research
Report Date:
1980 Dec 01