A tri-level optimization model for inventory control with uncertain demand and lead time

dc.contributor.author Wang, Lizhi
dc.contributor.author Rahdar, Mohammad
dc.contributor.author Wang, Lizhi
dc.contributor.author Hu, Guiping
dc.contributor.author Hu, Guiping
dc.contributor.department Electrical and Computer Engineering
dc.contributor.department Industrial and Manufacturing Systems Engineering
dc.date 2019-11-20T18:35:44.000
dc.date.accessioned 2020-06-30T04:48:32Z
dc.date.available 2020-06-30T04:48:32Z
dc.date.copyright Sun Jan 01 00:00:00 UTC 2017
dc.date.issued 2018-01-01
dc.description.abstract <p>We propose an inventory control model for an uncapacitated warehouse in a manufacturing facility under demand and lead time uncertainty. The objective is to make ordering decisions to minimize the total system cost. We introduce a two-stage tri-level optimization model with a rolling horizon to address the uncertain demand and lead time regardless of their underlying distributions. In addition, an exact algorithm is designed to solve the model. We compare this model in a case study with three decision-making strategies: optimistic, moderate, and pessimistic. Our computational results suggest that the performances of these models are either consistently inferior or highly sensitive to cost parameters (such as holding cost and shortage cost), whereas the new tri-level optimization model almost always results in the lowest total cost in all parameter settings.</p>
dc.description.comments <p>This is a manuscript of an article published as Rahdar, Mohammad, Lizhi Wang, and Guiping Hu. "A tri-level optimization model for inventory control with uncertain demand and lead time." <em>International Journal of Production Economics</em> 195 (2018): 96-105. DOI: <a href="http://dx.doi.org/10.1016/j.ijpe.2017.10.011" target="_blank">10.1016/j.ijpe.2017.10.011</a>. Posted with permission.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/imse_pubs/219/
dc.identifier.articleid 1222
dc.identifier.contextkey 15832203
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath imse_pubs/219
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/44517
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/imse_pubs/219/2018_WangLizhi_TriLevelOptimization.pdf|||Fri Jan 14 22:39:34 UTC 2022
dc.source.uri 10.1016/j.ijpe.2017.10.011
dc.subject.disciplines Industrial Engineering
dc.subject.disciplines Industrial Organization
dc.subject.disciplines Systems Engineering
dc.subject.keywords Inventory control
dc.subject.keywords Uncertain demand
dc.subject.keywords Uncertain lead time
dc.subject.keywords Tri-level optimization model
dc.subject.keywords Supply chain management
dc.title A tri-level optimization model for inventory control with uncertain demand and lead time
dc.type article
dc.type.genre article
dspace.entity.type Publication
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