Asymptotically Optimal Decisions for Replenishment and Transshipment
We study a model of two stores supplying seasonal demands allowing lateral transshipment.There is a finite planning horizon (selling season) with a one-time replenishment opportunity before the season starts. While the optimal transshipment policy can be derived by dynamic programming (DP), to optimize the replenishment quantities on top of the DP value function results in a rather intractable problem. We construct an upper bound to the original problem, which takes the form of a concave optimization problem with readily solutions to the replenishment quantities. We also propose a simple reservation policy for transshipment,leading to a lower bound. Furthermore, we show that following the replenishment quantities from solving the upper-bound problem and the reservation policy in the lower bound problem is asymptotically optimal, as the demand rates increase.
David D. Yao Yongbo Xiao
IEOR Department, Columbia University, New York, USA School of Economics and Management, Tsinghua University, Beijing 100084, China
国际会议
2007 International Conference on Manufacturing & Service Operations Management(2007制造与服务运作管理国际学术会议)
北京
英文
2007-06-18（万方平台首次上网日期，不代表论文的发表时间）