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APPROXIMATIONS OF DYNAMIC, MULTILOCATION PRODUCTION AND INVENTORY PROBLEMS.

Publication ,  Journal Article
Federgruen, A; Zipkin, P
Published in: Management Science
1984

Consider a central depot (or plant) which supplies several locations experiencing random demands. Orders are placed (or production is initiated) periodically by the depot. The order arrives after a fixed lead time, and is then allocated among the several locations. (The depot itself does not hold inventory. ) The allocations are finally received at the demand points after another lag. Unfilled demand at each location is backordered. Linear costs are incurred at each location for holding inventory and for backorders. Also, costs are assessed for orders placed by the depot. The object is to minimize the expected total cost of the system over a finite number of time periods. This system gives rise to a dynamic program with a state space of very large dimension. It is shown that this model can be systematically approximated by a single-location inventory problem. All the qualitative and quantitative results for such problems can be applied.

Duke Scholars

Published In

Management Science

Publication Date

1984

Volume

30

Issue

1

Start / End Page

69 / 84

Related Subject Headings

  • Operations Research
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences
 

Citation

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Federgruen, A., & Zipkin, P. (1984). APPROXIMATIONS OF DYNAMIC, MULTILOCATION PRODUCTION AND INVENTORY PROBLEMS. Management Science, 30(1), 69–84.
Federgruen, A., and P. Zipkin. “APPROXIMATIONS OF DYNAMIC, MULTILOCATION PRODUCTION AND INVENTORY PROBLEMS.Management Science 30, no. 1 (1984): 69–84.
Federgruen A, Zipkin P. APPROXIMATIONS OF DYNAMIC, MULTILOCATION PRODUCTION AND INVENTORY PROBLEMS. Management Science. 1984;30(1):69–84.
Federgruen, A., and P. Zipkin. “APPROXIMATIONS OF DYNAMIC, MULTILOCATION PRODUCTION AND INVENTORY PROBLEMS.Management Science, vol. 30, no. 1, 1984, pp. 69–84.
Federgruen A, Zipkin P. APPROXIMATIONS OF DYNAMIC, MULTILOCATION PRODUCTION AND INVENTORY PROBLEMS. Management Science. 1984;30(1):69–84.

Published In

Management Science

Publication Date

1984

Volume

30

Issue

1

Start / End Page

69 / 84

Related Subject Headings

  • Operations Research
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences