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DC Field | Value | Language |
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dc.contributor.author | Chen, Z | - |
dc.contributor.author | Rossi, R | - |
dc.date.accessioned | 2024-01-27T09:47:17Z | - |
dc.date.available | 2024-01-27T09:47:17Z | - |
dc.date.issued | 2020-11-25 | - |
dc.identifier | ORCID iD: Zhen Chen https://orcid.org/0000-0002-1619-3017 | - |
dc.identifier | 102378 | - |
dc.identifier.citation | Chen, Z. and Rossi, M. (2021) 'A dynamic ordering policy for a stochastic inventory problem with cash constraints', Omega, 102, 102378, pp. 1 - 14. doi: 10.1016/j.omega.2020.102378. | en_US |
dc.identifier.issn | 0305-0483 | - |
dc.identifier.uri | https://bura.brunel.ac.uk/handle/2438/28105 | - |
dc.description.abstract | This paper investigates a stochastic inventory management problem in which a cash-constrained small retailer periodically purchases a product and sells it to customers while facing non-stationary demand. In each period, the retailer’s available cash restricts the maximum quantity that can be ordered. There is a fixed ordering cost incurred when an order is issued by the retailer. We introduce a heuristic (s, C(x), S) policy inspired by numerical findings and by a structural analysis. The policy operates as follows: when the initial inventory x is less than s and the initial cash is greater than the state-dependent value C(x), the retailer should order a quantity that brings inventory as close to Sas possible; otherwise, the retailer should not order. We first determine the values of the controlling parameters s, C(x) and Svia the re- sults of stochastic dynamic programming and test their performance in an extensive computational study. The results show that the (s, C(x), S) policy performs well, with a maximum optimality gap of less than 1%, and an average gap of approximately 0.03%. We then develop a simple and time-efficient heuristic method for computing policy (s, C(x), S) by solving a mixed-integer linear programming problem: the average gap for this heuristic is less than 1% on our test bed. | en_US |
dc.description.sponsorship | Chongqing Social Science Planning Fund under Project 2020BS49; Fundamental Research Funds for the Central Universities of China under Project SWU1909738; Research Funds of the Research Institute of Intelligent Finance and Platform Economics, Southwest University under Project 20YJ0105. | en_US |
dc.format.extent | 1 - 14 | - |
dc.format.medium | Print-Electronic | - |
dc.language | English | - |
dc.language.iso | en_US | en_US |
dc.publisher | Elsevier | en_US |
dc.rights | Copyright © 2020 Elsevier. All rights reserved. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/ (see: https://www.elsevier.com/about/policies/sharing). | - |
dc.rights.uri | https://creativecommons.org/licenses/by-nc-nd/4.0/ | - |
dc.subject | stochastic inventory | en_US |
dc.subject | non-stationary demand | en_US |
dc.subject | cash-flow constraint | en_US |
dc.subject | (s, C(x), S) policy | en_US |
dc.title | A dynamic ordering policy for a stochastic inventory problem with cash constraints | en_US |
dc.type | Article | en_US |
dc.identifier.doi | https://doi.org/10.1016/j.omega.2020.102378 | - |
dc.relation.isPartOf | Omega | - |
pubs.publication-status | Published | - |
pubs.volume | 102 | - |
dc.identifier.eissn | 1873-5274 | - |
dc.rights.holder | Elsevier | - |
Appears in Collections: | Brunel Business School Research Papers |
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FullText.pdf | Copyright © 2020 Elsevier. All rights reserved. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/ (see: https://www.elsevier.com/about/policies/sharing). | 242.64 kB | Adobe PDF | View/Open |
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