主讲人： Liu Fang
Liu Fang is an assistant professor in the department of Information Technology and Operations Management, Nanyang Business School. She received her doctoral degree in Operations Management from the Fuqua School of Business, Duke University and her Bachelor’s degree from the School of Mathematics, Peking University. She has presented her research in conferences such as INFORMS, MSOM and POMS. Her papers have been accepted in leading operations journals such as Operations Research, Manufacturing & Service Operations Management, and Production and Operations Management.
In a two-stage serial supply chain, a periodic flexible policy (PF policy) allows the retailer to receive fixed orders that may depend on demand history in one period of the ordering cycle and order freely in other periods. Existing literature has shown that certain PF policies can significantly reduce the inefficiency in a decentralized supply chain. However, these works have mostly defined and implemented ad-hoc periodic flexible policies and have not attempted to identify the optimal periodic flexible policies. In this paper, we characterize the structure of the optimal PF policy using calculus of variations. In particular, we show that under the optimal PF policy, the retailer receives shipments either according to a state dependent capacitated policy or a state dependent order up to policy. Furthermore, we can approximate the retailer's optimal restricted ordering function by a piecewise linear function and show numerically that this approximation is near optimal.