An Approximate Method for Integrated Stochastic Replenishment Planning with Supplier Selection

Rabin Sahu, Rabin Sahu, Clarisse Dhaenens, Nadarajen Veerapen, Manuel Davy

2020

Abstract

A practical methodology for integrated stochastic replenishment planning with supplier selection is proposed for the single item inventory system. A rolling horizon strategy is adopted to implement the ordering decisions. Our method works in two stages. The first stage is a general black box stage that gives the minimum expected “coverage period” cost. The second stage uses a dynamic programming approach to compute the minimum expected cost for the rolling horizon. The proposed method is applicable for both stationary and non-stationary demand distributions and even for problems with minimum order quantity constraints. We also propose to examine the benefits of a dynamic supplier selection approach in comparison to selecting a common supplier. We conduct extensive numerical analyses on synthetic data sets for validation.

Paper Citation

in Harvard Style

Sahu R., Dhaenens C., Veerapen N. and Davy M. (2020). An Approximate Method for Integrated Stochastic Replenishment Planning with Supplier Selection. In Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-396-4, pages 80-88. DOI: 10.5220/0008970500800088

in Bibtex Style

@conference{icores20,
author={Rabin Sahu and Clarisse Dhaenens and Nadarajen Veerapen and Manuel Davy},
title={An Approximate Method for Integrated Stochastic Replenishment Planning with Supplier Selection},
booktitle={Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2020},
pages={80-88},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008970500800088},
isbn={978-989-758-396-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - An Approximate Method for Integrated Stochastic Replenishment Planning with Supplier Selection
SN - 978-989-758-396-4
AU - Sahu R.
AU - Dhaenens C.
AU - Veerapen N.
AU - Davy M.
PY - 2020
SP - 80
EP - 88
DO - 10.5220/0008970500800088