Managing a Customer Following a Target Reverting Policy

摘要: We consider a stochastic, capacitated production-inventory model in which the customer provides information about expected timing of future orders to supplier. allow for randomness order arrivals as well quantity demanded, but work under assumption that is making every effort follow schedule provided. term this target reverting policy. This gives rise an interesting nonstationary inventory control at After characterizing optimal policy, we develop solution procedures compute parameters. An extensive computational study insights into behavior optimality. Further, comparing cost policy simple policies either ignore customer's or capacity constraint, are able provide when these simplifications could be costly.