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Further Research and Extensions

  • Baoding Liu
  • Augustine O. Esogbue
Chapter
  • 146 Downloads
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 20)

Abstract

Although the economic criterion based inventory theory has been extensively researched and discussed during the past half a century, it has witnessed limited success in application. This is, in part, attributable to the use of model parameters which are usually difficult to estimate or measure. Examples of such parameters are the shortage cost and inventory carrying or holding cost. Additionally, the classic inventory theory literature is almost taciturn with regards to practical realization of these parameters. Inventory policies which are derived by optimizing objective functions that are couched in terms of profit maximization or cost minimization tend to ignore the immediate concern of the decision maker, usually at the plant or operator’s level.

Keywords

Decision Maker Resource Allocation Problem Shortage Cost Fuzzy Criterion Reservoir Operation Problem 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Baoding Liu
    • 1
  • Augustine O. Esogbue
    • 2
  1. 1.Department of Applied MathematicsTsinghua UniversityBeijingChina
  2. 2.School of Industrial and Systems EngineeringGeorgia Institute of TechnologyAtlantaUSA

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