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A single-period inventory placement problem for a supply system with the satisficing objective

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  • Chung, Chia-Shin
  • Flynn, James
  • Kuik, Roelof
  • Staliński, Piotr

Abstract

Consider 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.

Suggested Citation

  • Chung, Chia-Shin & Flynn, James & Kuik, Roelof & Staliński, Piotr, 2013. "A single-period inventory placement problem for a supply system with the satisficing objective," European Journal of Operational Research, Elsevier, vol. 224(3), pages 520-529.
    • Handle: RePEc:eee:ejores:v:224:y:2013:i:3:p:520-529
    DOI: 10.1016/j.ejor.2012.09.009
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    References listed on IDEAS

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    4. Dai, B. & Chen, H.X. & Li, Y.A. & Zhang, Y.D. & Wang, X.Q. & Deng, Y.M., 2021. "Inventory replenishment planning of a distribution system with storage capacity constraints and multi-channel order fulfilment," Omega, Elsevier, vol. 102(C).

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