Technical Note-Constant-Order Policies for Lost-Sales Inventory Models with Random Supply Functions: Asymptotics and Heuristic

doi:10.1287/opre.2019.1971

CSpace > 应用数学研究所

	Technical Note-Constant-Order Policies for Lost-Sales Inventory Models with Random Supply Functions: Asymptotics and Heuristic
	Bu, Jinzhi 1; Gong, Xiting 2; Yao, Dacheng3
	2020-07-01
发表期刊	OPERATIONS RESEARCH
ISSN	0030-364X
卷号	68 期号:4 页码:1063-1073
摘要	We consider an infinite-horizon lost-sales inventory model where the supply takes positive lead times and is a random function of the order quantity (e.g., random yield/capacity). The optimal policy for this model is computationally intractable, and no heuristic has been proposed in the literature. In this paper, we focus on a simple class of constant-order policies (COPs) that place the same order in every period regardless of the system state. Under some assumptions on the random supply function, we prove that the best COP is asymptotically optimal with large lead times, and the optimality gap converges to zero exponentially fast in the lead time. We also prove that if the mean supply capacity is less than the mean demand, then the best COP is also asymptotically optimal with large penalty costs; otherwise, the long-run average cost of the best COP asymptotically increases at the rate of the square root of the penalty cost. Further, we construct a simple heuristic COP and show that it performs very close to the best COP. Finally, we provide a numerical study to derive further insights into the performance of the best COP.
关键词	inventory lost sales random supply function constant-order policy lead time penalty cost
DOI	10.1287/opre.2019.1971
收录类别	SCI
语种	英语
资助项目	Chinese University of Hong Kong (CUHK) Direct Grant[4057117] ; Hong Kong Research Grants Council (RGC) General Research Fund[CUHK14200718] ; Hong Kong Research Grants Council (RGC) General Research Fund[CUHK14500215] ; National Natural Science Foundation of China[11771432] ; National Natural Science Foundation of China[11401566]
WOS研究方向	Business & Economics ; Operations Research & Management Science
WOS类目	Management ; Operations Research & Management Science
WOS记录号	WOS:000556374400007
出版者	INFORMS
引用统计
文献类型	期刊论文
条目标识符	http://ir.amss.ac.cn/handle/2S8OKBNM/51947
专题	应用数学研究所
通讯作者	Gong, Xiting
作者单位	1.MIT, Inst Data Syst & Soc, 77 Massachusetts Ave, Cambridge, MA 02139 USA 2.Chinese Univ Hong Kong, CUHK Business Sch, Dept Decis Sci & Managerial Econ, Shatin, Hong Kong, Peoples R China 3.Chinese Acad Sci, Acad Math & Syst Sci, Inst Appl Math, Beijing 100190, Peoples R China
推荐引用方式 GB/T 7714	Bu, Jinzhi,Gong, Xiting,Yao, Dacheng. Technical Note-Constant-Order Policies for Lost-Sales Inventory Models with Random Supply Functions: Asymptotics and Heuristic[J]. OPERATIONS RESEARCH,2020,68(4):1063-1073.
APA	Bu, Jinzhi,Gong, Xiting,&Yao, Dacheng.(2020).Technical Note-Constant-Order Policies for Lost-Sales Inventory Models with Random Supply Functions: Asymptotics and Heuristic.OPERATIONS RESEARCH,68(4),1063-1073.
MLA	Bu, Jinzhi,et al."Technical Note-Constant-Order Policies for Lost-Sales Inventory Models with Random Supply Functions: Asymptotics and Heuristic".OPERATIONS RESEARCH 68.4(2020):1063-1073.