Good and bad news about the 4S1 T 5 policy
Publication
, Journal Article
Liu, F; Song, JS
Published in: Manufacturing and Service Operations Management
December 1, 2012
This paper studies the optimization of the 4S1 T 5 inventory policy, where T is the replenishment interval and S is the order-up-to level. First, we demonstrate that the previously established joint convexity of the long-run average cost is false. Hence, the optimization is not straightforward. We then point out that the joint convexity concept depends on whether S and T are continuous or discrete variables, and in some situations it may not even be well defined. Nonetheless, we are able to identify several useful properties of the cost function, such as submodularity and coordinatewise convexity. Based on these properties, we develop efficient algorithms to compute the optimal policy for continuous and discrete demands. © 2012 INFORMS.
Duke Scholars
Published In
Manufacturing and Service Operations Management
DOI
EISSN
1526-5498
ISSN
1523-4614
Publication Date
December 1, 2012
Volume
14
Issue
1
Start / End Page
42 / 49
Related Subject Headings
- Operations Research
- 4901 Applied mathematics
- 3509 Transportation, logistics and supply chains
- 1505 Marketing
- 1503 Business and Management
- 0102 Applied Mathematics
Citation
APA
Chicago
ICMJE
MLA
NLM
Liu, F., & Song, J. S. (2012). Good and bad news about the 4S1 T 5 policy. Manufacturing and Service Operations Management, 14(1), 42–49. https://doi.org/10.1287/msom.1110.0353
Liu, F., and J. S. Song. “Good and bad news about the 4S1 T 5 policy.” Manufacturing and Service Operations Management 14, no. 1 (December 1, 2012): 42–49. https://doi.org/10.1287/msom.1110.0353.
Liu F, Song JS. Good and bad news about the 4S1 T 5 policy. Manufacturing and Service Operations Management. 2012 Dec 1;14(1):42–9.
Liu, F., and J. S. Song. “Good and bad news about the 4S1 T 5 policy.” Manufacturing and Service Operations Management, vol. 14, no. 1, Dec. 2012, pp. 42–49. Scopus, doi:10.1287/msom.1110.0353.
Liu F, Song JS. Good and bad news about the 4S1 T 5 policy. Manufacturing and Service Operations Management. 2012 Dec 1;14(1):42–49.
Published In
Manufacturing and Service Operations Management
DOI
EISSN
1526-5498
ISSN
1523-4614
Publication Date
December 1, 2012
Volume
14
Issue
1
Start / End Page
42 / 49
Related Subject Headings
- Operations Research
- 4901 Applied mathematics
- 3509 Transportation, logistics and supply chains
- 1505 Marketing
- 1503 Business and Management
- 0102 Applied Mathematics