Efficient computational strategies for a mathematical programming model for multi-echelon inventory optimization based on the guaranteed-service approach

Victoria G. Achkar, Braulio Brunaud, Rami Musa, Ignacio E. Grossmann

Abstract: Highlights•The model allocates safety stocks in supply chains at minimum cost.•An MIQCP reformulation with piecewise approximation greatly improves computational efficiency.•The piecewise function yields an improved estimation for the fill rates.•The GSM is extended to handle non-normally distributed demands.•Real-world case studies solved to optimality within few seconds of computational time.