| Article ID: | iaor200942193 |
| Country: | United States |
| Volume: | 56 |
| Issue: | 4 |
| Start Page Number: | 1039 |
| End Page Number: | 1043 |
| Publication Date: | Jul 2008 |
| Journal: | Operations Research |
| Authors: | Shang Kevin H |
| Keywords: | heuristics |
We propose a heuristic for finding base order quantities for stochastic inventory models. The heuristic includes two steps. The first clusters the stages according to cost parameters. The second solves a single–stage problem for each cluster with the original problem data. In a numerical study, we show that the heuristic is near optimal.