A guaranteed service model with continuous review (r,Q) policy

Abderrahim Bendadou (), Yacine Rekik, Rim Kalaï and Zied Jemai
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Abderrahim Bendadou: University of Tunis El Manar
Yacine Rekik: ESCP Business School
Rim Kalaï: University of Tunis El Manar
Zied Jemai: University of Tunis El Manar

Annals of Operations Research, 2025, vol. 351, issue 1, No 32, 883-901

Abstract: Abstract This paper introduces a generalized Guaranteed Service Model (GSM) for production systems that operates under a continuous review inventory control policy (r,Q). The model incorporates dependencies between processing time and order quantity, as well as controllable setup times, offering a more realistic framework for inventory management. The optimization problem is formulated as a non-linear integer programming problem with a non-convex objective function. To solve this, we propose a hybrid approach that combines the Difference of Convex functions Algorithm (DCA) with a heuristic adjustment technique, enabling efficient computation of high-quality solutions. Numerical experiments demonstrate the effectiveness of the proposed method, achieving competitive performance compared to the Baron solver in terms of cost minimization.

Keywords: Guaranteed service model; All or nothing property; Controllable lead time; (r; Q) policy (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10479-025-06550-7

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