We consider a finite-horizon single-product periodic-review inventory management problem with demand distribution uncertainty. We formulate the problem as a dynamic program and prove the existence of an optimal (s, S) policy. The corresponding dynamic robust counterpart models are then developed for the box and the ellipsoid uncertainty sets. These counterpart models are transformed into tracta...

The principal challenge of inventory control in supply chains is that the interacting autonomous enterprises have to plan their production and logistics under information asymmetry, driven by different, often conflicting objectives. In this paper, four different computational approaches are investigated to cope with this challenge: decomposition, integration, coordination, and bilevel programmi...

We consider the problem of minimizing the overall cost of a supply chain, over a possibility long horizon, under demand uncertainly which is known only crudely. Under such circumstances, the method of choice is Robust Optimization, in particular the Affinely Adjustable Robust Counterpart (AARC) method which leads to tractable deterministic optimization problems. The latter is due to a recent re...

In this paper, we present a robust optimization formulation for dealing with demand uncertaintyin a dynamic pricing and inventory control problem for a make-to-stock manufacturing system. Weconsider a multi-product capacitated, dynamic setting. We introduce a demand-based fluid modelwhere the demand is a linear function of the price, the inventory cost is linear, the production ...

Efficient and effective management of inventory throughout the supply chain significantly improves the ultimate service provided to the customer. Efficient inventory management is a complex process which entails the management of the inventory in the entire supply chain and getting the final solution as optimal leading to minimum total supply chain cost. The dynamic nature of the excess stock l...