Periodic-Review Inventory Model with Three Consecutive Delivery Modes and Forecast Updates

Q. Feng, G. Gallego, Suresh Sethi, H. Yan and H. Zhang
Additional contact information
Q. Feng: University of Texas at Dallas
G. Gallego: Columbia University
H. Yan: University of Texas at Dallas
H. Zhang: Academy of Mathematics and Systems Science, Academia Sinica

Journal of Optimization Theory and Applications, 2005, vol. 124, issue 1, No 7, 137-155

Abstract: Abstract This paper is concerned with a periodic-review inventory system with three consecutive delivery modes (fast, medium, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are updated and decisions on how much to order using each of the three delivery modes are made. It is shown that there is a base-stock policy for fast and medium modes which is optimal. Furthermore, the optimal policy for the slow mode may not be a base-stock policy in general.

Keywords: Inventory; multiple delivery modes; forecast updates; base-stock policy (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (15)

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DOI: 10.1007/s10957-004-6469-6

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