A multi‐period inventory model with multi‐dimensional procurement bidding

We consider a multi‐period inventory model with raw material procurements carried out via a reverse auction. Bids are multi‐dimensional, and they consist of supplier information of price, shortage quantity and lead time. This work is an extension of our earlier work that has focused on multi‐dimensional procurement auctions in single‐period inventory models, to multi‐period settings. The new model is based on a hybrid approach combining stochastic dynamic programming and simulation.