Technical note ---Linear Inflation Rules for the Random Yield Problem: Analysis and Computations

Woonghee Tim Huh () and Mahesh Nagarajan ()
Additional contact information
Woonghee Tim Huh: Department of Industrial Engineering and Operations Research, Columbia University, New York, New York 10027
Mahesh Nagarajan: Operations and Logistics Division, Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada

Operations Research, 2010, vol. 58, issue 1, 244-251

Abstract: In this paper, we propose a simple heuristic approach for the inventory control problem with stochastic demand and multiplicative random yield. Our heuristic tries to find the best candidate within a class of policies that are referred to in the literature as the linear inflation rule (LIR) policies. Our approach is computationally fast, easy to implement, and intuitive to understand. Moreover, we find that in a significant number of instances our heuristic performs better than several other well-known heuristics that are available in the literature.

Keywords: inventory/production; operating characteristics; policies; uncertainties; stochastic (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://dx.doi.org/10.1287/opre.1080.0639 (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:oropre:v:58:y:2010:i:1:p:244-251

Access Statistics for this article

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