Single Cycle Continuous Review Policies for Arborescent Production/Inventory Systems

Stephen C. Graves and Leroy B. Schwarz
Additional contact information
Stephen C. Graves: The University of Rochester
Leroy B. Schwarz: The University of Rochester

Management Science, 1977, vol. 23, issue 5, 529-540

Abstract: In this paper we examine optimal and near-optimal continuous review policies for a deterministic arborescent inventory system: Known and constant outside demand must be met without backlogging or lost sales at minimum average system cost per unit time. Costs are of two types: A fixed order cost at each stage and proportional holding costs on each stage's echelon inventory. We describe some characteristics of optimal policies and, under fairly mild conditions (e.g., zero initial inventory), prove that the optimal stationary policy is a "single-cycle" policy. We present an efficient branch-and-bound algorithm for determining optimal single-cycle policies for arborescent systems. We also examine the near-optimality of "system myopic" single-cycle policies.

Date: 1977
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.23.5.529 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:23:y:1977:i:5:p:529-540

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().