MULTI-PERIOD STOCHASTIC NETWORK FLOW PROBLEMS WITH SERVICE LEVEL REQUIREMENTS: APPROXIMATION AND ERROR ESTIMATES |
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Authors: | Do Ba Khang Okitsugu Fujiwara |
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Affiliation: | a Division of Industrial Engineering and Management, Asian Institute of Technology, Bangkok, Thailand |
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Abstract: | A multi-period network flow formulation with uncertain demands is proposed which covers many stochastic production and inventory models with service level requirements. The problem is approximated with a concave cost deterministic network flow problem. Relative error bounds are given which indicate that the approximation is good enough to be accepted in practice. |
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