Accession Number : ADA018647
Title : Single Cycle Continuous Review Policies for Arborescent Production/Inventory Systems.
Descriptive Note : Final rept.,
Corporate Author : SCHWARZ (LEROY B) ROCHESTER N Y
Personal Author(s) : Schwarz,Leroy B.
Report Date : 30 OCT 1975
Pagination or Media Count : 31
Abstract : In this paper the author examines optimal and near-optimal continuous review policies for a deterministic arborescent inventory system: known and constant outside demand must be met without backlogging or lost sales at minimum average system cost per unit time. Costs are of two types: a fixed order cost at each stage and proportional holding costs on each stage's echelon inventory. The author describes some characteristics of optimal policies and, under farily mild conditions (e.g., zero initial inventory), prove that the optimal stationary policy is a 'single-cycle' policy. An efficient branch-and-bound algorithm for determining optimal single-cycle policies for arborescent systems is presented. The near-optimality of 'system myopic single-cycle policies is also examined.
Descriptors : *Inventory control, *Production control, Mathematical models, Decision theory, Optimization, Theorems
Subject Categories : Administration and Management
Mfg & Industrial Eng & Control of Product Sys
Distribution Statement : APPROVED FOR PUBLIC RELEASE