Show simple item record

dc.contributor.authorThorsen, Andreas H.
dc.contributor.authorYao, Tao
dc.date.accessioned2016-07-07T16:59:09Z
dc.date.available2016-07-07T16:59:09Z
dc.date.issued2015-12
dc.identifier.citationThorsen, Andreas, and Tao Yao. "Robust inventory control under demand and lead time uncertainty." Annals of Operations Research (October 2017): 207-236. DOI: 10.1007/s10479-015-2084-1en_US
dc.identifier.issn1572-9338
dc.identifier.urihttps://scholarworks.montana.edu/xmlui/handle/1/9924
dc.description.abstractIn this paper a general methodology is proposed based on robust optimization for an inventory control problem subject to uncertain demands and uncertain lead times. Several lead time uncertainty sets are proposed based on the budget uncertainty set, and a set based on the central limit theorem. Robust optimization models are developed for a periodic review, finite horizon inventory control problem subject to uncertain demands and uncertain lead times. We develop an approach based on Benders’ decomposition to compute optimal robust (i.e., best worst-case) policy parameters. The proposed approach does not assume distributional knowledge, makes no assumption regarding order crossovers, and is tractable in a practical sense. Comparing the new approach to an epigraph reformulation method, we demonstrate that the epigraph reformulation approach is overly conservative even when costs are stationary. The approach is benchmarked against the sample average approximation (SAA) method. Computational results indicate that the approach provides more stable and robust solutions compared to SAA in terms of standard deviation and worst-case solution, especially when the realized distribution is different than the sampled distribution.en_US
dc.titleRobust inventory control under demand and lead time uncertaintyen_US
dc.typeArticleen_US
mus.citation.extentfirstpage1en_US
mus.citation.extentlastpage30en_US
mus.citation.journaltitleAnnals of Operations Researchen_US
mus.citation.volume235en_US
mus.identifier.categoryBusiness, Economics & Managementen_US
mus.identifier.doi10.1007/s10479-015-2084-1en_US
mus.relation.collegeCollege of Businessen_US
mus.relation.departmentBusiness.en_US
mus.relation.universityMontana State University - Bozemanen_US
mus.contributor.orcidThorsen, Andreas H.|0000-0002-4592-4413en_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record


MSU uses DSpace software, copyright © 2002-2017  Duraspace. For library collections that are not accessible, we are committed to providing reasonable accommodations and timely access to users with disabilities. For assistance, please submit an accessibility request for library material.