A Chance Constrained Multiperiod Model for Inventory Management

Abstract

We address the multi-item, multi-period inventory control problem (with stochastic customer requisitions and leadtimes for resupply) at each Air Force base level supply stores for Budget Code 1 items subject to probabilistic constraints on (a) the-maximum dollar investment; (b) the minimum probability of immediately meeting customer requisitions on high priority items; and (c) meeting previously unfilled demands on high priority items as quickly as possible. We develop a chance constrained program for this problem that will yield decision rules expressing the decision variables (quantities of each item to order at each period) that are consistent with the constraints above and which maximize the sum of the probabilities of meeting customer requisitions on all items over a specified number of periods. We then develop an equivalent deterministic program whose solution will determine the coefficients of these decision rules.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1990
Accession Number
ADA239278

Entities

People

  • Harry N. Newton

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Abstracts
  • Air Force
  • Air Force Facilities
  • Coefficients
  • Computer Programming
  • Convex Programming
  • Discrete Distribution
  • Distribution Functions
  • Evolutionary Algorithms
  • Inventory
  • Inventory Control
  • Linear Programming
  • Money
  • Normal Distribution
  • Optimization
  • Probability
  • Random Variables

Readers

  • Logistics and Supply Chain Management.
  • Mathematical Modeling and Probability Theory.