The stochastic guaranteed service model with recourse for multi-echelon warehouse management

Jörg Rambau () and Konrad Schade ()

Mathematical Methods of Operations Research, 2014, vol. 79, issue 3, 293-326

Abstract: The guaranteed service model (GSM) computes optimal order-points in multi-echelon inventory control under the assumptions that delivery times can be guaranteed and the demand is bounded. Our new stochastic guaranteed service model (SGSM) with Recourse covers also scenarios that violate these assumptions. Simulation experiments on real-world data of a large German car manufacturer show that policies based on the SGSM dominate GSM-policies. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Multi-echelon inventory control; Guaranteed service model; Stochastic programming; Integer linear programming; Real-world application; MSC 90B05; MSC 90C10 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s00186-014-0464-y

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