A Series Expansion Approach to Risk Analysis of an Inventory System with Sourcing

J. Berkhout, B.F. Heidergott

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In this paper we extend the series expansion approach for uni-chain Markov processes to a special case of finite multi-chains with possible transient states. We will show that multi-chain Markov models arise naturally in simple models such as a single item inventory system with sourcing, i.e., with the possibility to choose between different suppliers for replenishment. Numerical examples are provided to illustrate the performance of the series expansion algorithm to the risk analysis of this type of inventory systems.
LanguageEnglish
Title of host publication12th International Workshop on Discrete Event Systems
Place of PublicationCachan, France
PublisherIFAC
Pages510-515
DOIs
StatePublished - 2014
EventWorkshop on Discrete Event Systems - Cachan, France
Duration: 1 Jan 20141 Jan 2014

Conference

ConferenceWorkshop on Discrete Event Systems
Period1/01/141/01/14

Cite this

Berkhout, J., & Heidergott, B. F. (2014). A Series Expansion Approach to Risk Analysis of an Inventory System with Sourcing. In 12th International Workshop on Discrete Event Systems (pp. 510-515). Cachan, France: IFAC. DOI: 10.3182/20140514-3-FR-4046.00095
Berkhout, J. ; Heidergott, B.F./ A Series Expansion Approach to Risk Analysis of an Inventory System with Sourcing. 12th International Workshop on Discrete Event Systems. Cachan, France : IFAC, 2014. pp. 510-515
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Berkhout, J & Heidergott, BF 2014, A Series Expansion Approach to Risk Analysis of an Inventory System with Sourcing. in 12th International Workshop on Discrete Event Systems. IFAC, Cachan, France, pp. 510-515, Workshop on Discrete Event Systems, 1/01/14. DOI: 10.3182/20140514-3-FR-4046.00095

A Series Expansion Approach to Risk Analysis of an Inventory System with Sourcing. / Berkhout, J.; Heidergott, B.F.

12th International Workshop on Discrete Event Systems. Cachan, France : IFAC, 2014. p. 510-515.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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AB - In this paper we extend the series expansion approach for uni-chain Markov processes to a special case of finite multi-chains with possible transient states. We will show that multi-chain Markov models arise naturally in simple models such as a single item inventory system with sourcing, i.e., with the possibility to choose between different suppliers for replenishment. Numerical examples are provided to illustrate the performance of the series expansion algorithm to the risk analysis of this type of inventory systems.

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Berkhout J, Heidergott BF. A Series Expansion Approach to Risk Analysis of an Inventory System with Sourcing. In 12th International Workshop on Discrete Event Systems. Cachan, France: IFAC. 2014. p. 510-515. Available from, DOI: 10.3182/20140514-3-FR-4046.00095