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Modeling Demand Propagation in Guaranteed Service Models

URN to cite this document: urn:nbn:de:bvb:703-epub-3582-8

Title data

Löhnert, Madeleine ; Rambau, Jörg:
Modeling Demand Propagation in Guaranteed Service Models.
Universität Bayreuth
Bayreuth , 2018 . - 6 S.

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Abstract

In this paper, the class of guaranteed service models for multi-echelon inventory management is enhanced with explicit demand propagation. More specifically, the known mixed integer linear programming formulation for the guaranteed service model is refined by new variables and restrictions so that it describes the internal demand propagation exactly for linear demand bound functions. With this feature, aspects like outsourcing as well as decision- dependent stochastic demands at internal stock points can be expressed exactly. The relevance of the new model is shown in an illustrative example, where the new model is able to find a solution with almost 40% lower actual cost compared to the existing approximative model without explicit demand propagation.

Further data

Item Type: Preprint, postprint
Additional notes (visible to public): Erscheint in: International Conference on Mathematical Modeling (MATHMOD) 2018, IFAC Papers online
Keywords: multi-echelon inventory management; mixed-integer linear programming; demand propagation; outsourcing; lost demand
Subject classification: MSC2010 90B05
DDC Subjects: 500 Science > 510 Mathematics
Institutions of the University: Faculties > Faculty of Mathematics, Physics und Computer Science > Department of Mathematics > Chair Mathematics in Economy
Faculties > Faculty of Mathematics, Physics und Computer Science > Department of Mathematics > Chair Mathematics in Economy > Chair Mathematics in Economy - Univ.-Prof. Dr. Jörg Rambau
Research Institutions > Research Centres > Forschungszentrum für Modellbildung und Simulation (MODUS)
Faculties
Faculties > Faculty of Mathematics, Physics und Computer Science
Faculties > Faculty of Mathematics, Physics und Computer Science > Department of Mathematics
Research Institutions
Research Institutions > Research Centres
Language: English
Originates at UBT: Yes
URN: urn:nbn:de:bvb:703-epub-3582-8
Date Deposited: 28 Feb 2018 06:54
Last Modified: 28 Mar 2019 09:52
URI: https://epub.uni-bayreuth.de/id/eprint/3582

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