Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains
In this paper, we minimize the holding cost of the safety stock in the supply chain subject to linear constraints on the service times between the nodes of the network. In the problem, the objective function is concave as we assume the demand to be bounded by a concave function. The optimal solution...
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| Format: | Article |
| Language: | en_US |
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2003
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| Online Access: | http://hdl.handle.net/1721.1/3751 |
| _version_ | 1826213017131417600 |
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| author | Lesnaia, Ekaterina |
| author_facet | Lesnaia, Ekaterina |
| author_sort | Lesnaia, Ekaterina |
| collection | MIT |
| description | In this paper, we minimize the holding cost of the safety stock in the supply chain subject to linear constraints on the service times between the nodes of the network. In the problem, the objective function is concave as we assume the demand to be bounded by a concave function. The optimal solutions of the problem belong to the set of extreme points of the polyhedron, specified by the constraints of the problem. We first characterize the extreme points for the two-layer networks and then provide bounds to use in a branch and bound algorithm. |
| first_indexed | 2024-09-23T15:42:18Z |
| format | Article |
| id | mit-1721.1/3751 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T15:42:18Z |
| publishDate | 2003 |
| record_format | dspace |
| spelling | mit-1721.1/37512019-04-10T12:16:32Z Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains Lesnaia, Ekaterina base-stock policy dynamic programming application multi-stage supply-chain application safety stock optimization branch and bound algorithm In this paper, we minimize the holding cost of the safety stock in the supply chain subject to linear constraints on the service times between the nodes of the network. In the problem, the objective function is concave as we assume the demand to be bounded by a concave function. The optimal solutions of the problem belong to the set of extreme points of the polyhedron, specified by the constraints of the problem. We first characterize the extreme points for the two-layer networks and then provide bounds to use in a branch and bound algorithm. Singapore-MIT Alliance (SMA) 2003-11-29T20:42:44Z 2003-11-29T20:42:44Z 2003-01 Article http://hdl.handle.net/1721.1/3751 en_US Innovation in Manufacturing Systems and Technology (IMST); 104685 bytes application/pdf application/pdf |
| spellingShingle | base-stock policy dynamic programming application multi-stage supply-chain application safety stock optimization branch and bound algorithm Lesnaia, Ekaterina Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains |
| title | Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains |
| title_full | Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains |
| title_fullStr | Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains |
| title_full_unstemmed | Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains |
| title_short | Optimizing Strategic Safety Stock Placement in Two-Layer Supply Chains |
| title_sort | optimizing strategic safety stock placement in two layer supply chains |
| topic | base-stock policy dynamic programming application multi-stage supply-chain application safety stock optimization branch and bound algorithm |
| url | http://hdl.handle.net/1721.1/3751 |
| work_keys_str_mv | AT lesnaiaekaterina optimizingstrategicsafetystockplacementintwolayersupplychains |