Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality

<div><p>Component commonality is a well-known approach in manufacturing, where the same components are used for multiple products. It has been implemented by many established companies such as Airbus, Kodak, Toyota, etc. We consider a standard two-product inventory model with a common co...

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Main Author: Abdelouahed Hamdi (14158899) (author)
Other Authors: Lotfi Tadj (18112834) (author)
Published: 2019
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author Abdelouahed Hamdi (14158899)
author2 Lotfi Tadj (18112834)
author2_role author
author_facet Abdelouahed Hamdi (14158899)
Lotfi Tadj (18112834)
author_role author
dc.creator.none.fl_str_mv Abdelouahed Hamdi (14158899)
Lotfi Tadj (18112834)
dc.date.none.fl_str_mv 2019-05-24T03:00:00Z
dc.identifier.none.fl_str_mv 10.3390/mca24020055
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Augmented_Lagrangian_Approach_to_the_Newsvendor_Model_with_Component_Commonality/25348300
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Mathematical sciences
Applied mathematics
Numerical and computational mathematics
stochastic inventory systems
component commonality
augmented Lagrangian
dc.title.none.fl_str_mv Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <div><p>Component commonality is a well-known approach in manufacturing, where the same components are used for multiple products. It has been implemented by many established companies such as Airbus, Kodak, Toyota, etc. We consider a standard two-product inventory model with a common component. The demands for the products are independent random variables. Instead of the usual approach to minimize the total shortage quantity, we propose to minimize the total shortage cost. The resulting problem is a non-convex nonlinear mathematical program. We illustrate the use of a primal-dual proximal method to solve this problem by obtaining numerically the optimal allocations of components. In particular, we show that a higher unit shortage cost induces a higher allocation.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Mathematical and Computational Applications<br> License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/mca24020055" target="_blank">https://dx.doi.org/10.3390/mca24020055</a></p>
eu_rights_str_mv openAccess
id Manara2_de1c2d75ff27de6675493c81ed6a5c4c
identifier_str_mv 10.3390/mca24020055
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/25348300
publishDate 2019
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rights_invalid_str_mv CC BY 4.0
spelling Augmented Lagrangian Approach to the Newsvendor Model with Component CommonalityAbdelouahed Hamdi (14158899)Lotfi Tadj (18112834)Mathematical sciencesApplied mathematicsNumerical and computational mathematicsstochastic inventory systemscomponent commonalityaugmented Lagrangian<div><p>Component commonality is a well-known approach in manufacturing, where the same components are used for multiple products. It has been implemented by many established companies such as Airbus, Kodak, Toyota, etc. We consider a standard two-product inventory model with a common component. The demands for the products are independent random variables. Instead of the usual approach to minimize the total shortage quantity, we propose to minimize the total shortage cost. The resulting problem is a non-convex nonlinear mathematical program. We illustrate the use of a primal-dual proximal method to solve this problem by obtaining numerically the optimal allocations of components. In particular, we show that a higher unit shortage cost induces a higher allocation.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Mathematical and Computational Applications<br> License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/mca24020055" target="_blank">https://dx.doi.org/10.3390/mca24020055</a></p>2019-05-24T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.3390/mca24020055https://figshare.com/articles/journal_contribution/Augmented_Lagrangian_Approach_to_the_Newsvendor_Model_with_Component_Commonality/25348300CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/253483002019-05-24T03:00:00Z
spellingShingle Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
Abdelouahed Hamdi (14158899)
Mathematical sciences
Applied mathematics
Numerical and computational mathematics
stochastic inventory systems
component commonality
augmented Lagrangian
status_str publishedVersion
title Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
title_full Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
title_fullStr Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
title_full_unstemmed Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
title_short Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
title_sort Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality
topic Mathematical sciences
Applied mathematics
Numerical and computational mathematics
stochastic inventory systems
component commonality
augmented Lagrangian