A single-period inventory placement problem for a supply system with the satisficing objective
AbstractConsider the inventory placement problem in an N-stage supply system facing a stochastic demand for a single planning period. Each stage is a stocking point holding some form of inventory (e.g., raw materials, subassemblies, product returns or finished products) that after a suitable transformation can satisfy demand. Stocking decisions are made before demand occurs. Unsatisfied demands are lost. The revenue, salvage value, ordering, transformation, and lost sales costs are proportional. There are fixed costs for utilizing stages for stock storage. The objective is to maximize the probability of achieving a given target profit level.
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Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Operational Research.
Volume (Year): 224 (2013)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/eor
Inventory; Stochastic; Newsvendor; Single period; Supply chain; Satisficing;
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