Large Deviations-Based Asymptotics for Inventory Control in Supply Chains

摘要: We consider a model of capacitated single-class supply chain consisting production facilities (stages) in tandem. External demand is met from the available finished goods inventory maintained front most downstream facility; unsatisfied backlogged. Every stage orders its upstream facility, thus constrained by local capacity and availability inventory. propose policies two separate cases: (1) when each facility has information about only, (2) knowledge total In case proposed policy guarantees that stockout probabilities at stay bounded below given constants (service level constraints). minimizes expected cost subject to desirable service-level constraints. both cases parameters are obtained analytically based on large deviations asymptotics, which leads drastic computational savings compared simulation. An important feature our it accommodates autocorrelated service processes, critical features modern failure-prone manufacturing systems. demonstrate detailed distributional incorporated into control decisions. discuss extensions multiclass setting where lost instead backordered.