A Periodic Review Inventory Model with Three Consecutive Delivery Modes and Forecast Updates
نویسنده
چکیده
This paper is concerned with a periodic review inventory system with three consecutive delivery modes (fast, medium, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are updated, and decisions on how much to order using each of the three delivery modes are made. Both finite and infinite horizon problems are treated. Objectives considered are those of discounted and average cost minimization. It is shown that in all cases, there is a base-stock policy for fast and medium modes which is optimal. Furthermore, the optimal policy for the slow mode is not a base-stock policy in general.
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