An Empirical Comparison of Two Approximately Optimal (s, S) Inventory Policies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook An Empirical Comparison of Two Approximately Optimal (s, S) Inventory Policies write by Richard Ehrhardt. This book was released on 1980. An Empirical Comparison of Two Approximately Optimal (s, S) Inventory Policies available in PDF, EPUB and Kindle. In this paper, we present an empirical comparison of two approximately optimal rules for computing (s, S) policies for single items under periodic review with a setup cost, linear holding and storage costs, fixed replenishment lead time, and backlogging of unfilled demand. The Naddor Approximation, originally designed for holding and shortage costs based on period-average inventory levels, is transformed for use in a system where these costs are based on period-end inventory. It is compared empirically with the Power Approximation and with exactly optimal policies in a system of independent inventory items having 576 distinct parameter settings. The Power Approximation yields lower expected total costs than the Naddor Approximation in 456 of the 576 cases. The cost differences tend to be rather small, however. When total costs are aggregated over the entire system, the Power Approximation is 1.65% above optimal, as compared with 2.34% for the Naddor Approximation. Significant differences appear only when components of total cost are examined. The robustness of the policies is examined by analyzing their performance when statistical estimates are used in place of the actual mean and variance of demand. We also discuss the sensitivity to parameter settings of the performance of the two rules. (Author).
An Empirical Study of Exactly and Approximately Optimal Inventory Policies
An Empirical Study of Exactly and Approximately Optimal Inventory Policies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook An Empirical Study of Exactly and Approximately Optimal Inventory Policies write by Harvey M. Wagner. This book was released on 1964. An Empirical Study of Exactly and Approximately Optimal Inventory Policies available in PDF, EPUB and Kindle.
Evaluation of Cost Balancing Policies in Multi-echelon Stochastic Inventory Control Problems
Evaluation of Cost Balancing Policies in Multi-echelon Stochastic Inventory Control Problems - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Evaluation of Cost Balancing Policies in Multi-echelon Stochastic Inventory Control Problems write by Qian Yu (S.M.). This book was released on 2010. Evaluation of Cost Balancing Policies in Multi-echelon Stochastic Inventory Control Problems available in PDF, EPUB and Kindle. (cont.) The dual-balancing policy can be modified in several ways to get other cost balancing policies. It has been proven that the dual-balancing policy has a worst-case guarantee of 2 but this does not indicate the empirical performance. An approximately optimal policy is considered as the benchmark to test the quality of the cost balancing policies. In the computational experiments, the dual-balancing policy shows an average error of 7.74% compared to the approximately optimal policy, much better than the theoretical worst-case guarantee. The three variants of cost balancing policies have made significant improvement on the performance of the dual-balancing policy. The accuracy of the dual-balancing policy is also affected by the system parameters. In addition, with high demand rate and long lead times, we have observed several scenarios when the cost balancing policies dominate the approximately optimal policy.
Proceedings
Proceedings - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Proceedings write by American Institute for Decision Sciences. Meeting. This book was released on 1985. Proceedings available in PDF, EPUB and Kindle.
Evaluating the Effectiveness of a New Method for Computing Approximately Optimal (s, S) Inventory Policies
Evaluating the Effectiveness of a New Method for Computing Approximately Optimal (s, S) Inventory Policies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Evaluating the Effectiveness of a New Method for Computing Approximately Optimal (s, S) Inventory Policies write by James R. Freeland. This book was released on 1978. Evaluating the Effectiveness of a New Method for Computing Approximately Optimal (s, S) Inventory Policies available in PDF, EPUB and Kindle.
