The optimal order policy for a capacitated multiple product inventory system under symmetry
Date of Issue2015
College of Business (Nanyang Business School)
Although many researches have conjectured the optimality of the hedging point policy for the multiple-product stochastic capacitated periodic review problem, it is still a challenge to prove the hypothesis. This paper considers a special case of the capacitated multiple-product periodic review problem where stochastic demand distribution, production rate, unit production cost and periodic expected inventory cost are the same for all different products. For this symmetric problem, we prove an optimal policy where ordering and non-ordering regions for every product are defined. Our research provides significant implications to the characterization of the optimal policy for the general problem.
Asia-Pacific journal of operational research
© 2015 World Scientific Publishing Co. & Operational Research Society of Singapore. This is the author created version of a work that has been peer reviewed and accepted for publication by Asia-Pacific Journal of Operational Research, World Scientific Publishing Co. & Operational Research Society of Singapore. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [http://dx.doi.org/10.1142/S0217595915500050].