Wednesday, March 07, 2007

XP to inventory problem

Here XP is the product of microsoft. X can be substituted by I, L, NL, D, S....
Yesterday, I try to read the paper about multilocation and multiperiod model by Karmarkar (1981). Originally when I saw programming form. I think I can handle it without too much difficulty considering quite amount of time I devote to those XP classes. But it turns out that I am still lost finally. That's why everyone need to focus.

But I think using XP especially constructing dual problem will help us increasing the understanding of the inventory problem more. In his paper, he shows that base stock is optimal policy under certain condition for example transshipment. And it follows monoticity properities.

Although I think there is a potential mismatch of his SNLP form and the transshipment application, I really like his method. At least it can be alternative method to show that base stock is optimal under single location without using DP and those derivative stuff. I think that we need to see more alternative methods to prove the same important stuff. Wish one day I can see a paper with name 'simple/alternative proof of xxx in inventory theory'.

If someday, there are erratum for those major journals. Although there is notes but that is not enough. Even the smatest and most rigorous people will make errors all the time. Also it would be very very nice to someone to discuss with you about the same paper that interest both. The understanding would be deeper. You will truely understand something when you teach/discuss with somebody. Also the new idea is easier to come out.

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