Seminar



    Department of Systems Engineering and Engineering Management

            The Chinese University of Hong Kong

 

Title     : Target Oriented Inventory Management



Speaker    : Mr. Daniel Zhuoyu LONG

             Department of Decision Sciences

             National University of Singapore



Date       : 28 January 2013 (Monday)

Time       : 11:00 a.m. – 12:30 p.m.

Venue      : Room 513

             William M.W. Mong Engineering Building

             CUHK

 

Abstract:

In this study we investigate the impact of target on both single-period and multi-periods inventory management problems. Different to the existing approach that maximizes the probability of the profit reaching targets, we model the effect of targets by optimizing a new target-oriented decision criterion. For the single-period (newsvendor) problem, the result from our theoretical model is consistent with existing findings in newsvendor experiments, and suggests that our modelling framework may provide a potential explanation for the behaviour. For the multi-periods problem, we incorporate the financing decisions, which is lending/borrowing activity to smooth out consumptions over time. We show that if borrowing and lending are unrestricted, the optimal financing policy of the criterion is to finance consumptions at the target levels for all periods except the last. Moreover, the optimal inventory policy preserves the structure of base-stock policy (without fixed-cost case) or (s,S) policy (with fixed-cost case), and could be achieved with relatively modest computational effort. Under restricted financing, we show that the optimal policies correspond to those that maximize expected additive-exponential utilities, and can be obtained by an efficient algorithm.



Biography:

Daniel Zhuoyu Long is a PhD candidate in the Department of Decision Sciences, National University of Singapore. Daniel received his bachelor degree from Tsinghua University, and master degree from Chinese Academy of Science. His research interests are in inventory control, project management, target-based risk management, and robust optimization. His current research revolves around the aspect of decision criteria for two classical operations research problems—inventory management and project management. His paper “Managing Operational and Financing Decisions to Meet Consumption Targets” received the second prize in the 2013 POMS-HK student paper competition.





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

Host:           Prof. Helen Meng

Tel:             (852) 3943-8316

Email:          hmmeng@se.cuhk.edu.hk
Enquiries:     Mrs. Monica Wong

                    Department of Systems Engineering

                    and Engineering Management

                     CUHK

Tel.:             (852) 3943-8315

Email:          dept@se.cuhk.edu.hk