@inproceedings{b20801845cec487387a7927a02b636b9,
title = "A Stochastic Optimization Algorithm for Joint Inventory and Fulfillment in an Omnichannel Supply Network",
abstract = "We study an inventory optimization problem for a retailer that faces stochastic online and in-store demand in a selling season of fixed length. The retailer has to decide the order-up-to inventory levels and an order fulfillment policy that optimizes the expected total costs. We propose a technique that combines the framework of Turing-Good sampling and stochastic optimization. Our algorithm obtains an average of 6.2\% total cost reduction compared to a state-of-the-art algorithm. The cost decrease is obtained by reserving more inventory, thereby reducing the lost sales costs and reducing fulfillment costs. The algorithm we propose is especially beneficial for shorter time horizons and higher in-store demand.",
keywords = "Clustering, Inventory, Omnichannel logistics, Two-stage optimization",
author = "Abdelrahman Abouelrous and Gabor, \{Adriana F.\}",
note = "Funding Information: This publication is based upon work supported by the Khalifa University of Science and Technology under Award No. RC2 DSO and Grant Number FSU 2019-11. Publisher Copyright: {\textcopyright} IEOM Society International.; 4th European International Conference on Industrial Engineering and Operations Management, IEOM 2021 ; Conference date: 02-08-2021 Through 05-08-2021",
year = "2021",
language = "British English",
isbn = "9781792361272",
series = "Proceedings of the International Conference on Industrial Engineering and Operations Management",
pages = "2387--2395",
editor = "Mario Fargnoli and Mara Lombardi and Massimo Tronci and Patrick Dallasega and Savino, \{Matteo Mario\} and Francesco Costantino and \{Di Gravio\}, Giulio and Riccardo Patriarca",
booktitle = "Proceedings - 4th European Rome Conference 2021",
}