A simulation optimisation approach for inventory management decision support based on incomplete information

Abstract

This text summarizes the PhD thesis defended by the author in October 2007 under the supervision of Gerrit K. Janssens at Hasselt University, Belgium. The thesis is written in English and is available from the author upon request. The overall objective of this thesis is twofold. First, the demand process is described under the condition of incomplete information. Then a framework is developed for inventory management decision support for intermittent demand. Related to the first objective, two main contributions are proposed. Under the condition of incomplete information on demand, characteristics as demand shape and unimodality are identified and the optimal inventory level given a desired performance level is determined. The second objective also results in two main contributions of the thesis: the proposition of a best strategy in combining inventory decision making and demand forecasting for intermittent demand and the description of the impact of uncertainty on the supply side on the best strategy for intermittent demand.