A MARKET SELECTION AND INVENTORY ORDERING PROBLEM UNDER DEMAND UNCERTAINTY

作者:Shu, Jia*; Li, Zhengyi; Zhong, Weijun
来源:Journal of Industrial and Management Optimization, 2011, 7(2): 425-434.
DOI:10.3934/jimo.2011.7.425

摘要

We study an integrated market selection and inventory control problem that was initially proposed by Geunes et al. [Naval Research Logistics, 51(1):117-136, 2004]. This problem generalizes the classical EOQ problem by incorporating the market choice decisions. In this note, we further consider the problem with stochastic demand in which we assume the demand mean and variance are known for each market. We show that the problem can be formulated as an unconstrained nonlinear binary IP model. Its special structure leads to efficient solution algorithms and we summarize some interesting observations via numerical experiments.