Tuesday, 16:15 - 16:40 h, Room: H 0111


Adam Elmachtoub
Supply chain management with online customer selection

Coauthor: Retsef Levi


We consider new online versions of supply chain management and logistics models, where in addition to production decisions, one also has to decide on which customers to serve. Specifically, customers arrive sequentially during a selection phase, and one has to decide whether to accept or reject each customer upon arrival. If a customer is rejected, then a lost-sales cost is incurred. Once the selection decisions are all made, one has to satisfy all the accepted customers with minimum possible production cost. The goal is to minimize the total cost of lost-sales and production. A key feature of the model is that customers arrive in an online manner, and the decision maker does not require any information about future arrivals. We provide several novel algorithms for online customer selection problems which are based on new variants of repeated optimization and interesting connections to cooperative game theory. For many important settings, our algorithms achieve competitive ratio guarantees that are close to best possible.


Talk 3 of the invited session Tue.3.H 0111
"Approximation algorithms for supply chain management and logistics optimization models" [...]
Cluster 13
"Logistics, traffic, and transportation" [...]


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