Note: A Simple Heuristic for Serial Inventory Systems with Fixed Order Costs

Kevin H. Shang ()
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Kevin H. Shang: Fuqua School of Business, Duke University, Durham, North Carolina 27708

Operations Research, 2008, vol. 56, issue 4, 1039-1043

Abstract: We propose a heuristic for finding base order quantities for stochastic inventory models. The heuristic includes two steps. The first clusters the stages according to cost parameters. The second solves a single-stage problem for each cluster with the original problem data. In a numerical study, we show that the heuristic is near optimal.

Keywords: multiecholon; (R; nQ) policies; simple solution (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (8)

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