Lost-Sales Problems with Stochastic Lead Times: Convexity Results for Base-Stock Policies
Author
Abstract
Suggested Citation
DOI: 10.1287/opre.1040.0130
Download full text from publisher
References listed on IDEAS
- Robert S. Kaplan, 1970. "A Dynamic Inventory Model with Stochastic Lead Times," Management Science, INFORMS, vol. 16(7), pages 491-507, March.
- Thomas E. Morton, 1971. "The Near-Myopic Nature of the Lagged-Proportional-Cost Inventory Problem with Lost Sales," Operations Research, INFORMS, vol. 19(7), pages 1708-1716, December.
- van Donselaar, Karel & de Kok, Ton & Rutten, Werner, 1996. "Two replenishment strategies for the lost sales inventory model: A comparison," International Journal of Production Economics, Elsevier, vol. 46(1), pages 285-295, December.
- Steven Nahmias, 1979. "Simple Approximations for a Variety of Dynamic Leadtime Lost-Sales Inventory Models," Operations Research, INFORMS, vol. 27(5), pages 904-924, October.
- Ganesh Janakiraman & John A. Muckstadt, 2004. "Inventory Control in Directed Networks: A Note on Linear Costs," Operations Research, INFORMS, vol. 52(3), pages 491-495, June.
- Brian Downs & Richard Metters & John Semple, 2001. "Managing Inventory with Multiple Products, Lags in Delivery, Resource Constraints, and Lost Sales: A Mathematical Programming Approach," Management Science, INFORMS, vol. 47(3), pages 464-479, March.
- Hill, Roger M., 1999. "On the suboptimality of (S-1, S) lost sales inventory policies," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 387-393, March.
- Johansen, Soren Glud, 2001. "Pure and modified base-stock policies for the lost sales inventory system with negligible set-up costs and constant lead times," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 391-399, May.
- William Karush, 1957. "A Queuing Model for an Inventory Problem," Operations Research, INFORMS, vol. 5(5), pages 693-703, October.
- Narendra Agrawal & Stephen A. Smith, 1996. "Estimating negative binomial demand for retail inventory management with unobservable lost sales," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(6), pages 839-861, September.
- Paul Glasserman & Sridhar Tayur, 1995. "Sensitivity Analysis for Base-Stock Levels in Multiechelon Production-Inventory Systems," Management Science, INFORMS, vol. 41(2), pages 263-281, February.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Jinzhi Bu & Xiting Gong & Dacheng Yao, 2019. "Technical Note—Constant-Order Policies for Lost-Sales Inventory Models with Random Supply Functions: Asymptotics and Heuristic," Operations Research, INFORMS, vol. 68(4), pages 1063-1073, July.
- Li, Zhaolin (Erick) & Liang, Guitian & Fu, Qi (Grace) & Teo, Chung-Piaw, 2023. "Base-Stock Policies with Constant Lead Time: Closed-Form Solutions and Applications," Working Papers BAWP-2023-01, University of Sydney Business School, Discipline of Business Analytics.
- Hill, R.M., 2007. "Continuous-review, lost-sales inventory models with Poisson demand, a fixed lead time and no fixed order cost," European Journal of Operational Research, Elsevier, vol. 176(2), pages 956-963, January.
- Erica L. Plambeck & Amy R. Ward, 2007. "Note: A Separation Principle for a Class of Assemble-to-Order Systems with Expediting," Operations Research, INFORMS, vol. 55(3), pages 603-609, June.
- Qi Feng & Sirong Luo & J. George Shanthikumar, 2020. "Integrating Dynamic Pricing with Inventory Decisions Under Lost Sales," Management Science, INFORMS, vol. 66(5), pages 2232-2247, May.
- Yanyi Xu & Sang-Phil Kim & Arnab Bisi & Maqbool Dada & Suresh Chand, 2018. "Base-Stock Models for Lost Sales: A Markovian Approach," Purdue University Economics Working Papers 1305, Purdue University, Department of Economics.
- Retsef Levi & Robin Roundy & Van Anh Truong & Xinshang Wang, 2017. "Provably Near-Optimal Balancing Policies for Multi-Echelon Stochastic Inventory Control Models," Mathematics of Operations Research, INFORMS, vol. 42(1), pages 256-276, January.
- Woonghee Tim Huh & Ganesh Janakiraman & John A. Muckstadt & Paat Rusmevichientong, 2009. "Asymptotic Optimality of Order-Up-To Policies in Lost Sales Inventory Systems," Management Science, INFORMS, vol. 55(3), pages 404-420, March.
- Anshul Sheopuri & Ganesh Janakiraman & Sridhar Seshadri, 2010. "New Policies for the Stochastic Inventory Control Problem with Two Supply Sources," Operations Research, INFORMS, vol. 58(3), pages 734-745, June.
- Cai, Gangshu (George) & Chiang, Wen-Chyuan & Chen, Xiangfeng, 2011. "Game theoretic pricing and ordering decisions with partial lost sales in two-stage supply chains," International Journal of Production Economics, Elsevier, vol. 130(2), pages 175-185, April.
- Kumar Muthuraman & Sridhar Seshadri & Qi Wu, 2015. "Inventory Management with Stochastic Lead Times," Mathematics of Operations Research, INFORMS, vol. 40(2), pages 302-327, February.
- David A. Goldberg & Dmitriy A. Katz-Rogozhnikov & Yingdong Lu & Mayank Sharma & Mark S. Squillante, 2016. "Asymptotic Optimality of Constant-Order Policies for Lost Sales Inventory Models with Large Lead Times," Mathematics of Operations Research, INFORMS, vol. 41(3), pages 898-913, August.
- Kouki, Chaaben & Babai, M. Zied & Jemai, Zied & Minner, Stefan, 2019.
"Solution procedures for lost sales base-stock inventory systems with compound Poisson demand,"
International Journal of Production Economics, Elsevier, vol. 209(C), pages 172-182.
- Zied Jemai & Chaaben Kouki & Mohamed Zied Babai & Stefan Minner, 2019. "Solution procedures for lost sales base-stock inventory systems with compound Poisson demand," Post-Print hal-01742197, HAL.
- Schmitt, Thomas G. & Kumar, Sanjay & Stecke, Kathryn E. & Glover, Fred W. & Ehlen, Mark A., 2017. "Mitigating disruptions in a multi-echelon supply chain using adaptive ordering," Omega, Elsevier, vol. 68(C), pages 185-198.
- Bijvank, Marco & Vis, Iris F.A., 2012. "Lost-sales inventory systems with a service level criterion," European Journal of Operational Research, Elsevier, vol. 220(3), pages 610-618.
- Woonghee Tim Huh & Mahesh Nagarajan, 2010. "Technical note ---Linear Inflation Rules for the Random Yield Problem: Analysis and Computations," Operations Research, INFORMS, vol. 58(1), pages 244-251, February.
- Qiushi Chen & Lei Zhao & Jan C. Fransoo & Zhe Li, 2019. "Dual-mode inventory management under a chance credit constraint," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(1), pages 147-178, March.
- Silver, Edward A. & Robb, David J., 2008. "Some insights regarding the optimal reorder period in periodic review inventory systems," International Journal of Production Economics, Elsevier, vol. 112(1), pages 354-366, March.
- Bijvank, Marco & Vis, Iris F.A., 2011. "Lost-sales inventory theory: A review," European Journal of Operational Research, Elsevier, vol. 215(1), pages 1-13, November.
- Xiuli Chao & Xiting Gong & Cong Shi & Chaolin Yang & Huanan Zhang & Sean X. Zhou, 2018. "Approximation Algorithms for Capacitated Perishable Inventory Systems with Positive Lead Times," Management Science, INFORMS, vol. 64(11), pages 5038-5061, November.
- Woonghee Tim Huh & Ganesh Janakiraman & John A. Muckstadt & Paat Rusmevichientong, 2009. "An Adaptive Algorithm for Finding the Optimal Base-Stock Policy in Lost Sales Inventory Systems with Censored Demand," Mathematics of Operations Research, INFORMS, vol. 34(2), pages 397-416, May.
- Huanan Zhang & Xiuli Chao & Cong Shi, 2020. "Closing the Gap: A Learning Algorithm for Lost-Sales Inventory Systems with Lead Times," Management Science, INFORMS, vol. 66(5), pages 1962-1980, May.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Bijvank, Marco & Vis, Iris F.A., 2011. "Lost-sales inventory theory: A review," European Journal of Operational Research, Elsevier, vol. 215(1), pages 1-13, November.
- Cai, Gangshu (George) & Chiang, Wen-Chyuan & Chen, Xiangfeng, 2011. "Game theoretic pricing and ordering decisions with partial lost sales in two-stage supply chains," International Journal of Production Economics, Elsevier, vol. 130(2), pages 175-185, April.
- Paul Zipkin, 2008. "Old and New Methods for Lost-Sales Inventory Systems," Operations Research, INFORMS, vol. 56(5), pages 1256-1263, October.
- Hill, Roger M. & Johansen, Soren Glud, 2006. "Optimal and near-optimal policies for lost sales inventory models with at most one replenishment order outstanding," European Journal of Operational Research, Elsevier, vol. 169(1), pages 111-132, February.
- Hill, R.M., 2007. "Continuous-review, lost-sales inventory models with Poisson demand, a fixed lead time and no fixed order cost," European Journal of Operational Research, Elsevier, vol. 176(2), pages 956-963, January.
- Erica L. Plambeck & Amy R. Ward, 2007. "Note: A Separation Principle for a Class of Assemble-to-Order Systems with Expediting," Operations Research, INFORMS, vol. 55(3), pages 603-609, June.
- Johansen, Soren Glud, 2005. "Base-stock policies for the lost sales inventory system with Poisson demand and Erlangian lead times," International Journal of Production Economics, Elsevier, vol. 93(1), pages 429-437, January.
- Retsef Levi & Ganesh Janakiraman & Mahesh Nagarajan, 2008. "A 2-Approximation Algorithm for Stochastic Inventory Control Models with Lost Sales," Mathematics of Operations Research, INFORMS, vol. 33(2), pages 351-374, May.
- Kim, Eungab & Park, Taeho, 2016. "Admission and inventory control of a single-component make-to-order production system with replenishment setup cost and lead time," European Journal of Operational Research, Elsevier, vol. 255(1), pages 91-102.
- Woonghee Tim Huh & Ganesh Janakiraman & John A. Muckstadt & Paat Rusmevichientong, 2009. "Asymptotic Optimality of Order-Up-To Policies in Lost Sales Inventory Systems," Management Science, INFORMS, vol. 55(3), pages 404-420, March.
- David A. Goldberg & Dmitriy A. Katz-Rogozhnikov & Yingdong Lu & Mayank Sharma & Mark S. Squillante, 2016. "Asymptotic Optimality of Constant-Order Policies for Lost Sales Inventory Models with Large Lead Times," Mathematics of Operations Research, INFORMS, vol. 41(3), pages 898-913, August.
- Ganesh Janakiraman & John A. Muckstadt, 2009. "A Decomposition Approach for a Class of Capacitated Serial Systems," Operations Research, INFORMS, vol. 57(6), pages 1384-1393, December.
- Anshul Sheopuri & Ganesh Janakiraman & Sridhar Seshadri, 2010. "New Policies for the Stochastic Inventory Control Problem with Two Supply Sources," Operations Research, INFORMS, vol. 58(3), pages 734-745, June.
- Johansen, Søren Glud, 2021. "The Markov model for base-stock control of an inventory system with Poisson demand, non-crossing lead times and lost sales," International Journal of Production Economics, Elsevier, vol. 231(C).
- Kouki, Chaaben & Babai, M. Zied & Jemai, Zied & Minner, Stefan, 2019.
"Solution procedures for lost sales base-stock inventory systems with compound Poisson demand,"
International Journal of Production Economics, Elsevier, vol. 209(C), pages 172-182.
- Zied Jemai & Chaaben Kouki & Mohamed Zied Babai & Stefan Minner, 2019. "Solution procedures for lost sales base-stock inventory systems with compound Poisson demand," Post-Print hal-01742197, HAL.
- Bijvank, Marco & Vis, Iris F.A., 2012. "Lost-sales inventory systems with a service level criterion," European Journal of Operational Research, Elsevier, vol. 220(3), pages 610-618.
- Chiang, Chi, 2006. "Optimal ordering policies for periodic-review systems with replenishment cycles," European Journal of Operational Research, Elsevier, vol. 170(1), pages 44-56, April.
- Yanyi Xu & Sang-Phil Kim & Arnab Bisi & Maqbool Dada & Suresh Chand, 2018. "Base-Stock Models for Lost Sales: A Markovian Approach," Purdue University Economics Working Papers 1305, Purdue University, Department of Economics.
- Xiaoming Li, 2015. "Optimal Policies and Bounds for Stochastic Inventory Systems with Lost Sales," Journal of Optimization Theory and Applications, Springer, vol. 164(1), pages 359-375, January.
- Ben-Ammar, Oussama & Bettayeb, Belgacem & Dolgui, Alexandre, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," International Journal of Production Economics, Elsevier, vol. 218(C), pages 106-117.
More about this item
Keywords
inventory/production; periodic review; lost sales; base-stock policies; convexity; sample-path properties;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:52:y:2004:i:5:p:795-803. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.