lost-sales

A multi-stage stochastic integer programming approach for a multi-echelon lot-sizing problem with returns and lost sales

  • Quan Dong
  • Safia Kedad-Sidhoum
  • Céline Gicquel
  • Franco Quezada
    • Categories Applications - OR and Management Sciences, Branch and Cut Algorithms, Production and Logistics Tags , , , , , ,

    We consider an uncapacitated multi-item multi-echelon lot-sizing problem within a remanufacturing system involving three production echelons: disassembly, refurbishing and reassembly. We seek to plan the production activities on this system over a multi-period horizon. We consider a stochastic environment, in which the input data of the optimization problem are subject to uncertainty. We propose a … Read more

    Optimality gap of constant-order policies decays exponentially in the lead time for lost sales models

  • David A. Goldberg
  • Linwei Xin
    • Categories Supply Chain Management Tags , , , , ,

    Inventory models with lost sales and large lead times have traditionally been considered intractable due to the curse of dimensionality. Recently, Goldberg and co-authors laid the foundations for a new approach to solving these models, by proving that as the lead time grows large, a simple constant-order policy is asymptotically optimal. However, the bounds proven … Read more