Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization

Victoria G. Achkar, Braulio Brunaud, Hector D. Perez, Rami Musa, Carlos A. Méndez, Ignacio E. Grossmann

Abstract: Highlights•Multi-echelon inventory optimization based on guaranteed service.•Model integrates existing and novel features present in real applications.•Quadratically Constrained formulation yields order magnitude computational savings.•Model tested on real-world application and validated with simulation.