Inventory control under substitutable demand: A stochastic game application

Demand Management and Inventory Control for Substitutable Products

This paper studies dynamic inventory and pricing decisions for a set of substitutable products over a finite planning horizon. We present a general stochastic, price-dependent demand model that unifies many commonly used demand models in the literature. Unsatisfied demands are backlogged. There are linear purchasing, inventory-holding, and backordering costs. The objective is to maximize the to...

Stochastic inventory control with partial demand observability

Optimal Inventory Policies under Stochastic Production and Demand Rates

We consider a single stage production-inventory system whose production and demand rates are modulated by an environment process modeled as a finite state Continuous Time Markov Chain (CTMC). When the inventory level reaches zero, an order is placed from an external supplier, and it arrives instantaneously. We derive an Economic Order Quantity (EOQ ) policy that minimizes the long-run average c...

Vendor Managed Inventory of a Supply Chain under Stochastic Demands

In this research, an integrated inventory problem is formulated for a single-vendor multiple-retailer supply chain that works according to the vendor managed inventory policy. The model is derived based on the economic order quantity in which shortages with penalty costs at the retailers` level is permitted. As predicting customer demand is the most important problem in inventory systems and th...

Constraint-Based Local Search for Inventory Control Under Stochastic Demand and Lead Time

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