On the Echelon-Order-Up-To policy: A stochastic optimal control approach

摘要：

Using stochastic optimal control theory we derive an optimal linear supply chain policy for minimizing a two echelon supply chains inventory costs in the face of ARMA(p,q) stochastic demand. We also derive an optimal linear policy that minimizes local inventory costs and compare it to the overall optimal linear policy. This locally optimal linear policy is equivalent to the Echelon-Order-Up-To policy. We enumerate the performance of both policies for the more specific case of AR(1) demand. Numerical investigations reveal that the performance enhancement achieved with the overall optimal policy is significant.

关键词： State space order-up-to policy 2 echelon supply chain inventory variance

作者: Gerard Gaalman Stephen M. Disney

作者单位: Faculty of Management and Organization, University of Groningen, The Netherlands Logistics System Dynamics Group, Cardiff Business School, UK

会议类型: 国际会议

会议名称: 2007 International Conference on Manufacturing & Service Operations Management(2007制造与服务运作管理国际学术会议)

会议地点: 北京

会议语种:英文

在线出版日期: 2007-06-18（万方平台首次上网日期，不代表论文的发表时间）