Article ID: | iaor19982597 |
Country: | United States |
Volume: | 45 |
Issue: | 1 |
Start Page Number: | 83 |
End Page Number: | 98 |
Publication Date: | Feb 1998 |
Journal: | Naval Research Logistics |
Authors: | Puerto J., Fernndez-Rodrguez Fernando |
Keywords: | programming: goal |
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.