Dynamic Programming Method for Optimizing Stock Allocation Using Chebyshev Polynomial Approximation

Abstract

Stock allocation is a system used to ensure that goods and services reach the ultimate users through efficient stocking in warehouses close to the consumers. The dire need for optimum distribution of goods to both retailers and consumers has cost a reasonable drift from ordinary allocation to developing a mathematical model that ensures efficient allocation of goods and services. This paper presents a method of optimizing stock allocation using the Chebyshev polynomial approximation of an n- warehouse inventory model. The features of Chebyshev polynomial are enumerated and used on stock allocation environment to obtain good approximation that would ensure high yield to the firms. It has been shown that this method is efficient, stable and provides quick access to obtaining optimal allocation. The model of the method is given, relevant algorithm and theorems are included while illustrative examples are provided.