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2005, Volume 1, Issue 4: 513-531. Doi: 10.3934/jimo.2005.1.513
This issue Previous Article Branch and bound method for sensor scheduling in discrete time Next Article Quadratic smoothing approximation to $l_1$ exact penalty function in global optimization

Information Updated Supply Chain with Service-Level Constraints

  • 1.

    School of Management, The University of Texas at Dallas, Richardson, TX, 75083-0688

  • 2.

    Dept. of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Shatin, N.T. Hong Kong

  • 3.

    Institute of Applied Mathematics, Academy of Mathematics and Systems Science, Academia Sinica, Beijing, 100080

Received:  August 31, 2005
Revised:  September 30, 2005
Published:  September 2005
Abstract Related Papers Cited by
    Abstract
  • We study a single-period two-stage service-constrained supply chain with an information update. The buyer has two purchasing instances: before and after the forecast update. The procurement cost at the second stage is uncertain at the first stage. We determine the optimal ordering policy with two service constraints (a service constraint is imposed for each procurement stage) and discuss the impact of the forecast quality. Finally, we extend our model to a multi-period problem with two ordering stages in each period.
    Mathematics Subject Classification: 90B30; 90B50; 49N90.

    Citation:
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