6533b825fe1ef96bd12831e7

RESEARCH PRODUCT

Cooperative Inventory control

Dario BausoRaffaele PesentiLaura Giarre

subject

Inventory controlConsensus protocol; Inventory level; Nash equilibrium; Setup cost; Supply chain;Inventory levelPolynomialMathematical optimizationComputational complexity theoryComputer scienceSetup costSupply chainEconomic shortageFinite horizonSupply chainConsensus protocolNash equilibriumExponential functionComputingMilieux_GENERALsymbols.namesakeNash equilibriumsymbols

description

In multi-retailer inventory control the possibility of sharing setup costs motivates communication and coordination among the retailers. We solve the problem of finding suboptimal distributed reordering policies that minimize setup, ordering, storage, and shortage costs incurred by the retailers over a finite horizon. Neuro-dynamic programming (NDP) reduces the computational complexity of the solution algorithm from exponential to polynomial on the number of retailers.

yearjournalcountryeditionlanguage
2005-01-01
https://hdl.handle.net/11380/1123541