Management Science and Financial Engineering

The Korean Operations Research and Management Science Society (한국경영과학회)
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A Generalization of the Robust Inventory Problem with Non-Stationary Costs

  • Park, Kyung-Chul (School of Business, Myongji University) ;
  • Lee, Kyung-Sik (Department of Industrial & Management Engineering, Hankuk University of Foreign Studies)
  • Received : 2010.10.18
  • Accepted : 2010.11.02
  • Published : 2010.11.30
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Abstract

This paper considers the robust inventory control problem introduced by Bertsimas and Thiele [4]. In their paper, they have shown that the robust version of the inventory control problem can be solved by solving a nominal inventory problem which is formulated as a mixed integer program. As a proper generalization of the model, we consider the problem with non-stationary cost. In this paper, we show that the generalized version can also be solved by solving a nominal inventory problem. Furthermore, we show that the problem can be solved efficiently.

Keywords

References

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