A Fully Polynomial-Time Approximation Scheme for Single-Item Stochastic Inventory Control with Discrete Demand

The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands under periodic review and finite time horizon. In this paper, we prove that this problem is intractable and design for it a fully polynomial-ti...

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Published in:Mathematics of operations research Vol. 34; no. 3; pp. 674 - 685
Main Authors: Halman, Nir, Klabjan, Diego, Mostagir, Mohamed, Orlin, Jim, Simchi-Levi, David
Format: Journal Article
Language:English
Published: Linthicum INFORMS 01.08.2009
Institute for Operations Research and the Management Sciences
Subjects:
Algorithms
Analysis
Approximation
approximation algorithms
Approximations
Carrying costs
Cost functions
Dynamic programming
Evaluation
Integers
Inventory control
Mathematical functions
Polynomials
Procurement
Stochastic control theory
stochastic dynamic programming
stochastic inventory management
Studies
ISSN:0364-765X, 1526-5471
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Abstract The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands under periodic review and finite time horizon. In this paper, we prove that this problem is intractable and design for it a fully polynomial-time approximation scheme.
AbstractList The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands under periodic review and finite time horizon. In this paper, we prove that this problem is intractable and design for it a fully polynomial-time approximation scheme.
The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands under periodic review and finite time horizon. In this paper, we prove that this problem is intractable and design for it a fully polynomial-time approximation scheme. [PUBLICATION ABSTRACT]
Audience Academic
Author Mostagir, Mohamed
Simchi-Levi, David
Orlin, Jim
Halman, Nir
Klabjan, Diego
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10.1515/9781503619883
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10.1145/1217856.1217860
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10.1145/1132516.1132538
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Snippet The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands...
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SubjectTerms Algorithms
Analysis
Approximation
approximation algorithms
Approximations
Carrying costs
Cost functions
Dynamic programming
Evaluation
Integers
Inventory control
Mathematical functions
Polynomials
Procurement
Stochastic control theory
stochastic dynamic programming
stochastic inventory management
Studies
Title A Fully Polynomial-Time Approximation Scheme for Single-Item Stochastic Inventory Control with Discrete Demand
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