Linear Inflation Rules for the Random Yield Problem: Analysis and Computations

• 成果类型: Article
• 署名作者: Huh, Woonghee Tim; Nagarajan, Mahesh
• 署名单位: Columbia University; University of British Columbia
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.1080.0639
• 发表日期: 2010
• 页码: 244-251
• 关键词: myopic heuristics; policies

摘要

In this paper, we propose a simple heuristic approach for the inventory control problem with stochastic demand and multiplicative random yield. Our heuristic tries to find the best candidate within a class of policies that are referred to in the literature as the linear inflation rule (LIR) policies. Our approach is computationally fast, easy to implement, and intuitive to understand. Moreover, we find that in a significant number of instances our heuristic performs better than several other well-known heuristics that are available in the literature.