A fully polynomial-time approximation scheme for single-item stochastic inventory control with discrete demand

Nir Halman, Diego Klabjan, Mohamed Mostagir, Jim Orlin, David Simchi-Levi

Research output: Contribution to journalArticlepeer-review

53 Scopus citations

Abstract

The single-item stochastic inventory control problem is to find an inventory replenishment policy in the presence of independent discrete stochastic demands under periodic review and finite time horizon. In this paper, we prove that this problem is intractable and design for it a fully polynomial-time approximation scheme.

Original languageEnglish
Pages (from-to)674-685
Number of pages12
JournalMathematics of Operations Research
Volume34
Issue number3
DOIs
StatePublished - Aug 2009
Externally publishedYes

Keywords

  • Approximation algorithms
  • Stochastic dynamic programming
  • Stochastic inventory management

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