A new approach to multistage serial inventory systems
Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2001.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2005
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| Online Access: | http://hdl.handle.net/1721.1/8776 |
| _version_ | 1826213458892292096 |
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| author | Achy-Brou, Aristide C. E., 1976- |
| author2 | John N. Tsitsiklis. |
| author_facet | John N. Tsitsiklis. Achy-Brou, Aristide C. E., 1976- |
| author_sort | Achy-Brou, Aristide C. E., 1976- |
| collection | MIT |
| description | Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2001. |
| first_indexed | 2024-09-23T15:49:32Z |
| format | Thesis |
| id | mit-1721.1/8776 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T15:49:32Z |
| publishDate | 2005 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/87762019-04-12T08:57:11Z A new approach to multistage serial inventory systems Achy-Brou, Aristide C. E., 1976- John N. Tsitsiklis. Massachusetts Institute of Technology. Operations Research Center. Massachusetts Institute of Technology. Operations Research Center. Operations Research Center. Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2001. Includes bibliographical references (leaves 61-62). We consider a single product multistage serial inventory system with several installations, say N - I, ... , l. Installation N - I intakes exogenous supply of a single commodity. For i E {I, ... N - 2}, installation i is supplied by shipments from installation i + 1. Demands for the finished good occur at installation l. Demands that cannot be filled immediately are backlogged. We assume holding costs at each installation which are linear functions of inventory, as well as a constant cost for each unit of backlogged demand, per period. Clark and Scarf {1960) showed that over a finite horizon an echelon basestock policy is optimal. Federgruen and Zipkin (1984) extend their result to the infinite-horizon case for both discounted and average costs. We present a new approach to this multistage serial inventory management problem, and give new proofs of these results by introducing and solving a simple Travel Time problem, using Dynamic Programming. This approach is motivated by the fact that the exact cost-to-go function of the related Travel Time problem can be easily computed using a straightforward recursive procedure (instead of using the typical value iteration or policy iteration methods). Moreover, this cost-to-go function gives various insights useful for a group of more complex multistage inventory problems. In this regard, we discuss how this cost-to-go function can be used to develop good Approximate Dynamic Programming algorithms for a number of complex multistage serial inventory problems. The results obtained suggest that the idea of introducing a related "Travel Time" problem and our algorithm to solve this problem can be used as a building block of a new approach to solve large scale multistage inventory management problems. This thesis was part of a research effort to find a fast algorithm to get very good robust suboptimal solutions to large scale multistage inventory management problems. by Aristide C.E. Achy-Brou. S.M. 2005-08-23T15:14:21Z 2005-08-23T15:14:21Z 2001 2001 Thesis http://hdl.handle.net/1721.1/8776 48155059 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 62 leaves 3404163 bytes 3403919 bytes application/pdf application/pdf application/pdf Massachusetts Institute of Technology |
| spellingShingle | Operations Research Center. Achy-Brou, Aristide C. E., 1976- A new approach to multistage serial inventory systems |
| title | A new approach to multistage serial inventory systems |
| title_full | A new approach to multistage serial inventory systems |
| title_fullStr | A new approach to multistage serial inventory systems |
| title_full_unstemmed | A new approach to multistage serial inventory systems |
| title_short | A new approach to multistage serial inventory systems |
| title_sort | new approach to multistage serial inventory systems |
| topic | Operations Research Center. |
| url | http://hdl.handle.net/1721.1/8776 |
| work_keys_str_mv | AT achybrouaristidece1976 anewapproachtomultistageserialinventorysystems AT achybrouaristidece1976 newapproachtomultistageserialinventorysystems |