Inventory Control with Multiple Setup Costs

• 成果类型: Article
• 署名作者: Alp, Osman; Huh, Woonghee Tim; Tan, Tarkan
• 署名单位: Ted University; University of British Columbia; Eindhoven University of Technology
• 刊物名称: M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1523-4614
• DOI: 10.1287/msom.2013.0450
• 发表日期: 2014
• 页码: 89-103
• 关键词: Inventory Control; multiple setups; Markov Decision Process

摘要

We consider an infinite-horizon, periodic-review, single-item production/inventory system with random demand and backordering, where multiple setups are allowed in any period and a separate fixed cost is associated for each setup. Contrary to the majority of the literature on this topic, we do not restrict the order quantities to be integer multiples of the exogenously given batch size and instead allow the possibility of partial batches, in which case the fixed cost for ordering the batch is still fully charged. We build a model that particularly takes the batch-ordering cost structure into account. We introduce an alternative cost-accounting scheme to analyze the problem, which we use to develop a computationally efficient optimal solution method and several properties of the optimal solution. In addition, we propose two heuristic policies, both of which perform extremely well computationally.