Integration of COTS software products ARENA & CPLEX for an inventory/logistics problem
Computers and Operations Research
Integrated inventory pooling for firms servicing both on-line and store demand
Computers and Operations Research
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A major assumption in the analysis of (s, S) inventory systems with stochastic lead times is that orders are received in the same sequence as they are placed. Even under this assumption, much of the work to date has focused on the unconstrained optimization of the system, in which a penalty cost for unsatisfied demand is assigned. The literature on constrained optimization, wherein a service level requirement needs to be met, is more sparse. In this paper, we consider the constrained optimization problem, where orders are allowed to cross in time. We propose a feasible directions procedure that is simulation based, and present computational results for a large number of test cases. In the vast majority of cases, we come within 5% of estimated optimality.