Optimality Gap of Constant-Order Policies Decays Exponentially in the Lead Time for Lost Sales Models.
Linwei XinDavid A. GoldbergPublished in: Oper. Res. (2016)
Keyphrases
- lead time
- lost sales
- stochastic lead times
- demand distributions
- inventory systems
- order quantity
- supply chain
- continuous review inventory
- inventory control
- service level
- periodic review
- optimal policy
- infinite horizon
- holding cost
- inventory models
- single stage
- multi item
- base stock policies
- sample path
- probabilistic model
- base stock policy
- stochastic inventory
- optimal base stock levels
- total cost
- dynamic programming
- customer demand
- reorder point
- single product
- utility function
- decision makers
- random variables
- planning horizon
- inventory level
- objective function
- expected cost
- decision making