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                                                     Seminar

             Department of Systems Engineering and Engineering Management
                                  The Chinese University of Hong Kong

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Title

:

On the Optimality of Echelon Base Stock Policies for Capacitated Multi-Echelon Inventory Systems

　

　

　

Speaker

:

Prof. Yu Yimin

　

　

Department of Management Science

　

　

City University of Hong Kong

　

　

　

Date

:

March 26th, 2010 (Friday)

　

　

　

Time

:

4:30 p.m. - 5:30 p.m.

　

　

　

Venue

:

Room 513

　

　

William M.W. Mong Engineering Building

　

　

(Engineering Building Complex Phase 2)

　

　

CUHK

　

　

　

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Abstract:
　

This paper analyzes the structure of optimal policies for capacitated serial multi-echelon systems.

By extending the Clark and Scarf (1960) model to systems with capacity constraints, for a finite horizon model we show that the optimality of an echelon base stock policy when the echelon inventories at all stages are either component-wise smaller or component-wise larger than the optimal echelon inventory levels, otherwise, the optimal post-ordering echelon inventories are upperbounded by the resulting echelon inventories under the echelon base stock policy.

For the infinite horizon model with discounted cost, we show the optimality of an echelon base stock policy under appropriate initial echelon inventories.

Finally, we show that the optimality of echelon base stock policies for the average cost settings. Our results can be extended to systems with fixed leadtimes.


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Biography:
　

Yimin Yu obtained his PhD degree from University of Minnesota. He holds a master degree from Boston University and a B.S degree from University of Science and Technology of China.
His research interests include inventory management, revenue management, service operations and economic models.


************************* ALL ARE WELCOME ************************

　

　

　

Host

:

Prof. Zhou Xiang, Sean

Tel

:

(852) 2609-8336

Email

:

zhoux@se.cuhk.edu.hk

　

　

　

Enquiries

:

Prof. Nan Chen or Prof. Sean X. Zhou

　

:

Department of Systems Engineering and Engineering Management

　

　

CUHK

Website

:

http://www.se.cuhk.edu.hk/~seg5810

Email

:

seg5810@se.cuhk.edu.hk

　

　

　

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