Supply Chain Management

Strongly Polynomial Primal-Dual Algorithms for Concave Cost Combinatorial Optimization Problems

  • Thomas L. Magnanti
  • Dan Stratila
    • Categories Combinatorial Optimization, Supply Chain Management

    We introduce an algorithm design technique for a class of combinatorial optimization problems with concave costs. This technique yields a strongly polynomial primal-dual algorithm for a concave cost problem whenever such an algorithm exists for the fixed-charge counterpart of the problem. For many practical concave cost problems, the fixed-charge counterpart is a well-studied combinatorial optimization … Read more

    A new robust cycle-based inventory control policy

  • Yupeng Chen
  • Garud Iyengar
    • Categories Robust Optimization, Supply Chain Management

    In this paper, we propose a new robust cycle-based control policy for single installation inventory models with non-stationary uncertain demand. The policy is simple, flexible, easily implementable and preliminary numerical experiments suggest that the policy has very promising empirical performance. The policy can be used both when the excess demand is backlogged as well as … Read more

    A Multi-Product Risk-Averse Newsvendor with Exponential Utility Function

  • Sungyong Choi
  • Andrzej Ruszczyński
    • Categories Production and Logistics, Supply Chain Management Tags , ,

    We consider a multi-product newsvendor using an exponential utility function. We first establish a few basic properties for the newsvendor regarding the convexity of the model and monotonicity of the impact of risk aversion on the solution. When the product demands are independent and the ratio of the degree of risk aversion to the number … Read more

    A Multi-Product Risk-Averse Newsvendor with Law Invariant Coherent Measures of Risk

  • Sungyong Choi
  • Andrzej Ruszczyński
  • Yao Zhao
    • Categories Production and Logistics, Supply Chain Management Tags , , , ,

    We consider a multi-product newsvendor under the law-invariant coherent risk measures. We first establish a few fundamental properties of the model regarding the convexity of the problem, the symmetry of the solution and the impact of risk aversion. Specifically, we show that for identical products with independent demands, increased risk aversion leads to decreased orders. … Read more

    A Hierarchy of Near-Optimal Policies for Multi-stage Adaptive Optimization

  • Dimitris Bertsimas
  • Dan Iancu
  • Pablo A. Parrilo
    • Categories Robust Optimization, Semi-definite Programming, Supply Chain Management Tags , , ,

    In this paper, we propose a new tractable framework for dealing with multi-stage decision problems affected by uncertainty, applicable to robust optimization and stochastic programming. We introduce a hierarchy of polynomial disturbance-feedback control policies, and show how these can be computed by solving a single semidefinite programming problem. The approach yields a hierarchy parameterized by … Read more

    Exact and heuristic solutions of the global supply chain problem with transfer pricing

  • Pierre Hansen
  • Sébastien Le Digabel
  • Sylvain Perron
  • Nenad Mladenovic
    • Categories Applications - OR and Management Sciences, Nonlinear Optimization, Supply Chain Management Tags , , , , ,

    We examine the example of a multinational corporation that attempts to maximize its global after tax profits by determining the flow of goods, the transfer prices, and the transportation cost allocation between each of its subsidiaries. Vidal and Goetschalckx (2001) proposed a bilinear model of this problem and solved it by an Alternate heuristic. We … Read more

    A CONSTRUCTIVE HEURISTIC FOR THE INTEGRATED INVENTORY-DISTRIBUTION PROBLEM

  • T. F. Abdelmaguid
  • Maged M. Dessouky
  • Fernando Ordóñez
    • Categories Approximation Algorithms, Supply Chain Management Tags , ,

    We study the integrated inventory distribution problem which is concerned with multiperiod inventory holding, backlogging, and vehicle routing decisions for a set of customers who receive units of a single item from a depot with infinite supply. We consider an environment in which the demand at each customer is deterministic and relatively small compared to … Read more

    Robust Inventory Management Using Tractable Replenishment Policies

  • Chuen-Teck See
  • Melvyn Sim
    • Categories Robust Optimization, Stochastic Programming, Supply Chain Management Tags ,

    We propose tractable replenishment policies for a multi-period, single product inventory control problem under ambiguous demands, that is, only limited information of the demand distributions such as mean, support and deviation measures are available. We obtain the parameters of the tractable replenishment policies by solving a deterministic optimization problem in the form of second order … Read more

    Integer Programming Solution Approach for Inventory-Production-Distribution Problems with Direct Shipments

  • Miguel A. Lejeune
  • François Margot
    • Categories Branch and Cut Algorithms, Cutting Plane Approaches, Supply Chain Management Tags , , ,

    We construct an integrated multi-period inventory-production-distribution replenishment plan for three-stage supply chains. The supply chain maintains close-relationships with a small group of suppliers, and the nature of the products (bulk, chemical, etc.) makes it more economical to rely upon a direct shipment, full-truck load distribution policy between supply chain nodes. In this paper, we formulate … Read more