Research output per year
Research output per year
Peter Berling, Victor Martínez-De-Albéniz
Research output: Contribution to journal › Article › peer-review
In this article, we present a multistage model to optimize inventory control decisions under stochastic demand and continuous review. We first formulate the general problem for continuous stages and use a decomposition solution approach: since it is never optimal to let orders cross, the general problem can be broken into a set of single-unit subproblems that can be solved in a sequential fashion. These subproblems are optimal control problems for which a differential equation must be solved. This can be done easily by recursively identifying coefficients and performing a line search. The methodology is then extended to a discrete number of stages and allows us to compute the optimal solution in an efficient manner, with a competitive complexity.
Original language | English |
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Pages (from-to) | 32-46 |
Number of pages | 15 |
Journal | Naval Research Logistics |
Volume | 63 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2016 Feb 1 |
Research output: Working paper/Preprint › Working paper