Non-stationary (s, S) Policy Calculator

This online tool tackles the inventory control problem in a finite-horizon periodic-review system. It incorporates fixed replenishment setup costs and linear costs for holding and backorders. The tool determines the parameters for the optimal (s, S) inventory control policy. For a given set of parameters, it calculates the re-order points (s) and order-up-to levels (S) for each period, aiming to minimize the expected total costs over the planning horizon. Additionally, it displays the resulting control policy.

API documentation

References:

Onur A Kilic, S Armagan Tarim. A simple heuristic for computing non-stationary inventory policies based on function approximation. European Journal of Operational Research, 316(3), pp. 899-905, 2024

Roberto Rossi, Inventory Analytics. Cambridge, UK: Open Book Publishers, 2021

Herbert E. Scarf. Optimality of (s, S) policies in the dynamic inventory problem. In K. J. Arrow, S. Karlin, and P. Suppes, editors, Mathematical Methods in the Social Sciences, pp. 196-202. Stanford University Press, Stanford, CA, 1960