Multi-product batch replenishment strategies under stochastic demand and a joint capacity constraint

Abstract

We analyze a multi-product inventory replenishment problem with Poisson demands where the aggregate inventory level at any time is restricted by a common budget or space limitation. We present a semi-Markov decision problem formulation, several heuristics for finding the replenishment quantities (given the current inventories) and a comparison from a cost performance perspective.

Notes

*This represents a 6.65% penalty.