Introducing a New Formulation for the Warehouse Inventory Management Systems: with Two Stochastic Demand Patterns

this paper presents a new formulation for warehouse inventory management (WIM) in a stochastic situation. The primary source of this formulation is derivedfrom FP model, which has been proposed by Fletcher and Ponnambalam for reservoir management. The new proposedmathematical model is based on the fIrst and the secondmoments of storage as a stochastic variable. Using this model, the expected value of storage, the variance of storage,and the optimal ordering policies are determined. Moreover, the probability of within containment, surplus, and shortage are computable without adding any new variables. To validate the optimization model, a Monte Carlo simulation is used. Furthermore, to evaluate the performance of theoptimal FP policy, It is compared to (s*,S*) policy, as a very popular policy used in the literature, in terms of the expected total annual cost and the service level. It is also demonstrated that the FP policy has a superior performances than (s*,S*) policy

کلیدواژه ها:

supply chain ، warehouse inventory management (WIM) ، (s ، S) policy ، stationary and nonstationary demand ، service leveL