In this paper we develop procedures for setting the basestock levels for a buffer in a supply chain subject to uncertainty in the demands. Our work is motivated by experience with an industrial partner in the electronics industry who was subject to the following difficulties: short product cycles, a complex supply chain with multiple suppliers and long production leadtimes, and a very competiti...

generally ordering policies are done by two methods, including fix order quantity (foq) and fix order period (fop). these methods are static and either the quantity of ordering or the procedure of ordering is fixing in throughout time horizon. in real environments, demand is varying in any period and may be considered as uncertainty. when demand is variable in any period, the traditional and st...