SOME HEURISTICS FOR THE DISCRETE TIME‐PROPORTIONAL DEMAND INVENTORY PROBLEM

Abstract

This paper develops heuristics for the discrete‐time‐proportional demand inventory problem. In addition to the traditional minimal cost objective, return on investment in inventory is proposed as an alternative criterion in capital constrained situations. The resulting heuristics can be implemented with little computational effort. Moreover, the policies associated with the general inventory cases are independent of the length of the planning horizon. Some computational experience is also reported.