Pareto-optimality in classical inventory problems

✍ Scribed by J. Puerto; F.R. Fernández

• Publisher: John Wiley and Sons
• Year: 1998
• Tongue: English
• Weight: 111 KB
• Volume: 45
• Category: Article
• ISSN: 0894-069X
• DOI: 10.1002/(sici)1520-6750(199802)45:1<83::aid-nav5>3.0.co;2-h

✦ Synopsis

In this paper the inventory problem with backorders both deterministic and stochastic is studied using trade-off analysis in the context of vector optimization theory. The set of Pareto-optimal solutions is geometrically characterized in both the constrained and unconstrained cases. Moreover, a new way of utilizing Pareto-optimality concepts to handle classical inventory problems with backorders is derived. A new analysis of these models is done by means of a trade-off analysis. New solutions are shown, and an error bound for total inventory cost is provided. Other models such as multi-item or stochastic lead-time demand inventory problems are addressed and their Pareto-optimal solution sets are obtained. An example is included showing the additional applicability of this kind of analysis to handle parametric problems.