We consider the problem of placing inventory on a network in advance of uncertain demand, in order to minimize the sum of inventory placement costs and expected fulfillment and shortage costs. Complexity results (in terms of inapproximability lower bounds) are derived under different assumptions. Then we develop two approximation guarantees: one is asymptotically optimal as demand grows large, and the other provides a constant guarantee with metric fulfillment costs.
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Birge et al. (2025) studied this question.
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