A fully polynomial-time approximation scheme for single-item stochastic inventory control with discrete demand

Nir Halman; Diego Klabjan; Mohamed Mostagir; Jim Orlin; David Simchi-Levi

doi:10.1287/moor.1090.0391

A fully polynomial-time approximation scheme for single-item stochastic inventory control with discrete demand

Nir Halman^*, Diego Klabjan, Mohamed Mostagir, Jim Orlin, David Simchi-Levi

^*Corresponding author for this work

Managerial Economics, Decision Sciences and Operations

Research output: Contribution to journal › Article › peer-review

54 Scopus citations

Abstract

The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands under periodic review and finite time horizon. In this paper, we prove that this problem is intractable and design for it a fully polynomial-time approximation scheme.

Original language	English (US)
Pages (from-to)	674-685
Number of pages	12
Journal	Mathematics of Operations Research
Volume	34
Issue number	3
DOIs	https://doi.org/10.1287/moor.1090.0391
State	Published - Aug 2009

Keywords

Approximation algorithms
Stochastic dynamic programming
Stochastic inventory management

ASJC Scopus subject areas

General Mathematics
Computer Science Applications
Management Science and Operations Research

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10.1287/moor.1090.0391

Cite this

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title = "A fully polynomial-time approximation scheme for single-item stochastic inventory control with discrete demand",

abstract = "The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands under periodic review and finite time horizon. In this paper, we prove that this problem is intractable and design for it a fully polynomial-time approximation scheme.",

keywords = "Approximation algorithms, Stochastic dynamic programming, Stochastic inventory management",

author = "Nir Halman and Diego Klabjan and Mohamed Mostagir and Jim Orlin and David Simchi-Levi",

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AU - Simchi-Levi, David

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A fully polynomial-time approximation scheme for single-item stochastic inventory control with discrete demand

Abstract

Keywords

ASJC Scopus subject areas

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