search query: @indexterm Dynamic programming / total: 309
reference: 45 / 309
| Author: | |
| Title: | An inventory model embedded in designing a supply contract |
| Journal: | Management Science
1997 : FEB, VOL. 43:2, p. 184-189 |
| Index terms: | TRANSPORT SUPPLY CONTRACTS PROBABILITY STOCHASTIC PROCESSES DYNAMIC PROGRAMMING |
| Language: | eng |
| Abstract: | Modern supply and transportation contracts often specify the frequency and volume available for, future deliveries in advance even when final demand is uncertain, to reduce lead-time and its variability. The paper explores the joint optimization of contract parameters and inventory control policy in such environments by modelling and deriving the optimal periodic review inventory policy corresponding to a given supply contract, which generates piecewise-linear convex ordering costs. There are two critical levels in the optimal policy, and there is a range of stock levels for which the ordered equals the contract volume. |
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