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- W2392932085 abstract "A continuous-review, base-stock inventory model considering lost sales is proposed for general compound demands and random lead times. This model is a generalized form of the ( S, d) policy, which has already been shown to be the best modified base-stock policy (MBSP) for Poisson demand and fixed lead times. In this paper, customers’ inter-arrival times, demand sizes, and lead times are extended in a probabilistic situation with free distributions. Then, a hybrid simulation–optimization approach is developed to handle these generalized conditions. This approach uses design of experiments, a simulation model, and regression analysis to obtain the long-run cost function of the system under this extended MBSP. The optimal settings of this policy are achieved using a mathematical optimization model. Employing a simulation model, a cost function, and mathematical models makes this approach applicable for finding the optimal settings even in the presence of realistic restrictions and uncertainties. Moreover, a simulation-based procedure is introduced to find the optimal stock level for the traditional base-stock policy. The applicability of the proposed approach is illustrated through a real-world case study. Finally, a sensitivity analysis is applied using a series of benchmark instances, and some robustness properties are shown." @default.
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- W2392932085 date "2016-05-10" @default.
- W2392932085 modified "2023-09-24" @default.
- W2392932085 title "Simulation–optimization approach for a continuous-review, base-stock inventory model with general compound demands, random lead times, and lost sales" @default.
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- W2392932085 doi "https://doi.org/10.1177/0037549716644055" @default.
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