Universität zu Köln

Clarkson, Jake, Voelkel, Michael A., Sachs, Anna-Lena ORCID: 0000-0003-4101-5930 and Thonemann, Ulrich W. (2023). The periodic review model with independent age-dependent lifetimes. Prod. Oper. Manag., 32 (3). S. 813 - 829. HOBOKEN: WILEY. ISSN 1937-5956

Full text not available from this repository.

Abstract

A retailer places orders periodically for items that are shipped by a wholesaler. Items that are not sold perish randomly and independently of one another, with the perish probability depending on the age class. We consider a first-in-first-out policy for depleting items. We model this problem as a Markov decision process with stochastic demand, unit holding, outdating and ordering costs, plus unit penalty costs for lost sales. We prove convexity for the penultimate period and show convexity may not hold any earlier. A dynamic program can be solved optimally for small instances. We introduce both a one-stage-lookahead heuristic and a heuristic which is a combination of two existing standard approaches, the newsvendor and periodic review models. For simulated data, we compare these heuristics to the optimal solution for small problem instances and to further lookahead policies for larger problem instances. We show that the two new heuristics achieve results close to optimal. Our numerical study, which includes real data from a large European retail chain, highlights that products perishing independently from each other strongly affect model behavior compared to existing approaches from the literature.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Clarkson, Jake UNSPECIFIED UNSPECIFIED UNSPECIFIED Voelkel, Michael A. UNSPECIFIED UNSPECIFIED UNSPECIFIED Sachs, Anna-Lena UNSPECIFIED orcid.org/0000-0003-4101-5930 UNSPECIFIED Thonemann, Ulrich W. UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-670900
DOI:	10.1111/poms.13900
Journal or Publication Title:	Prod. Oper. Manag.
Volume:	32
Number:	3
Page Range:	S. 813 - 829
Date:	2023
Publisher:	WILEY
Place of Publication:	HOBOKEN
ISSN:	1937-5956
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language OPTIMAL ORDERING POLICIES; PERISHABLE INVENTORY; STOCK; DEMAND Multiple languages Engineering, Manufacturing; Operations Research & Management Science Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/67090