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2009 | 42 | 4 | 129-136
Article title

HEURISTIC APPROACH TO INVENTORY CONTROL WITH ADVANCE CAPACITY INFORMATION

Content
Title variants
Languages of publication
EN
Abstracts
EN
There is a growing trend of information sharing within modern supply chains. This trend is mainly stimulated by recent developments in information technology and the increasing awareness that accurate and timely information helps firms cope with volatile and uncertain business conditions. The authors model a periodic-review, single-item, capacitated stochastic inventory system, where a supply chain member has the ability to obtain advance capacity information (ACI) about future supply capacity availability. ACI is used to reduce the uncertainty of future supply and thus enables the decision-maker to make better ordering decisions. They develop an easily applicable heuristic based on insights gained from an analysis of the optimal policy. In a numerical study they quantify the benefits of ACI and compare the performance of the proposed heuristic with the optimal performance. They illustrate the conditions in which the procedure is working well and comment on its practical applicability.
Contributors
author
author
  • Marko Jaksic, Faculty of Economics, University of Ljubljana, Ljubljana, Slovenia, Kardeljeva ploscad 17, Ljubljana, Slovenia
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
10SIAAAA076514
YADDA identifier
bwmeta1.element.01cc6cc0-c174-347f-a489-4a73e278243c
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