Article ID: | iaor19961114 |
Country: | United Kingdom |
Volume: | 46 |
Issue: | 9 |
Start Page Number: | 1145 |
End Page Number: | 1152 |
Publication Date: | Sep 1995 |
Journal: | Journal of the Operational Research Society |
Authors: | Gder Faruk, Zydiak James, Chaudhry Sohail |
This paper studies the multi-item inventory problem with a single constraint. Two well-known approaches to this problem are the Lagrangian method and the fixed-cycle approach. Both of these methods generate stationary ordering policies. A competing approach is presented here that generates non-stationary ordering policies, with order quantities that vary over time. These non-stationary policies are, in all cases, preferred to those generated by the Lagrangian approach, and in some cases preferred to those generated by the fixed-cycle approach. Computational results comparing the three methods are also given.