Application of dynamic programming for finding optimal(s,S) inventory policy / Son Tung PHAN / 2022

Titre : Application of dynamic programming for finding optimal(s,S) inventory policy Type de document : Mémoire Auteurs : Son Tung PHAN, Auteur Année de publication : 2022 Importance : 23 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management CONTROLE ; INVENTAIRE ; PROGRAMMATION DYNAMIQUE Résumé : Two of the most important objectives in supply chain and more specifically in inventory management is to minimize the cost and provide satisfactory level of service to the customers. For companies, inventory management plays the role as a balancer between supply and demand. It is also a buffer against uncertainty in the long and complex supply chain. Fundamental problems in this area are overstocking and understocking.With overstocking, the effects are high-cost storage, obsolete stock and tied-up capital. Thus, there has long been a strong interest to study for effective inventory control system. One of the most widely used inventory control policies is reorder – order-up-to level (s, S) system. In this paper, we attempt to implement dynamic programming algorithm to find optimal values of s, S in order to minimize the total cost of the system. We limit ourselves to the simple settings of single item, single level, single location with zero lead time and stationary stochastic Poisson demand. Stockout policy is considered with backorder allowance and backorder cost. Even though mathematical proof and interesting properties of optimal (s, S) system has been in existence since 1960 (Scarf, 1960), there is not a lot of available code published for this application to our knowledge. The goal of this is to provide valid algorithm code using Python to solve s, S to optimality. Programme : MSc Supply Chain Management Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=564558