Inventory placement on a network

We consider the problem of placing inventory on a network in advance of uncertain demand, in order to minimize the sum of inventory placement costs and expected fulfillment and shortage costs. Complexity results (in terms of inapproximability lower bounds) are derived under different assumptions. Then we develop two approximation guarantees: one is asymptotically optimal as demand grows large, and the other provides a constant guarantee with metric fulfillment costs.

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Publication Details

Journal
Operations Research Letters
Published
2025-01-09
DOI
https://doi.org/10.1016/j.orl.2025.107240
Citations
1
Primary Topic
Complexity and Algorithms in Graphs
Type
article
Field-Weighted Citation Impact
1.50
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article

Inventory placement on a network

John R. Birge, Levi DeValve
1 citations
Operations Research Letters
Complexity and Algorithms in Graphs
1.50
article

Inventory placement on a network

John R. Birge, Levi DeValve
article en
1 citations

Abstract

We consider the problem of placing inventory on a network in advance of uncertain demand, in order to minimize the sum of inventory placement costs and expected fulfillment and shortage costs. Complexity results (in terms of inapproximability lower bounds) are derived under different assumptions. Then we develop two approximation guarantees: one is asymptotically optimal as demand grows large, and the other provides a constant guarantee with metric fulfillment costs.

Operations Research LettersVol. 60
Woodlawn School (US)
Openalex Percentile: Top 20%
Complexity and Algorithms in Graphs
1.50
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