A single-period inventory placement problem for a supply system with the satisficing objective

Chia-Shin Chung, James Flynn, Roelof Kuik and Piotr Staliński

European Journal of Operational Research, 2013, vol. 224, issue 3, 520-529

Abstract: Consider the inventory placement problem in an N-stage supply system facing a stochastic demand for a single planning period. Each stage is a stocking point holding some form of inventory (e.g., raw materials, subassemblies, product returns or finished products) that after a suitable transformation can satisfy demand. Stocking decisions are made before demand occurs. Unsatisfied demands are lost. The revenue, salvage value, ordering, transformation, and lost sales costs are proportional. There are fixed costs for utilizing stages for stock storage. The objective is to maximize the probability of achieving a given target profit level.

Keywords: Inventory; Stochastic; Newsvendor; Single period; Supply chain; Satisficing (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:224:y:2013:i:3:p:520-529

DOI: 10.1016/j.ejor.2012.09.009

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