Inventory Management Based on Target-Oriented Robust Optimization

• Published in: Management science Vol. 63; no. 12; pp. 4409 - 4427
• Main Authors: Lim, Yun Fong, Wang, Chen
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.12.2017; Institute for Operations Research and the Management Sciences
• Subjects: cost; Demand; Inventory; Inventory control; Inventory management; lead time; Mathematical optimization; Methods; Numerical analysis; Optimization; robust optimization; target; Uncertainty; variability

We propose a target-oriented robust optimization approach to solve a multiproduct, multiperiod inventory management problem subject to ordering capacity constraints. We assume the demand for each product in each period is characterized by an uncertainty set that depends only on a reference value and...