Myopic Inventory Policies Using Individual Customer Arrival Information

Myopic Inventory Policies Using Individual Customer Arrival Information

1 We investigate optimality of myopic policies using the single-unit decomposition approach in inventory management. We derive, under certain conditions, closed-form replenishment decisions, that we call a base-probability policy. That is, the order associated with a given customer is placed if and only if its arrival probability within the lead-time is higher than a threshold.

Myopic Inventory Policies in Continuous Inventory Systems with Emergency Orders

A make-to-order environment requires flexibility in the supply chain to facilitate fast response. Timely supply deliveries can be achieved in a cost-effective manner by having a portfolio of suppliers, or a portfolio of contracts with a single supplier, with different lead times and associated costs. In this paper we address the inventory management of such a system and evaluate the savings ass...

The Impact of Customer Response on Inventory and Utilization Policies

Robustness of inventory replenishment and customer selection policies for the dynamic and stochastic inventory-routing problem

When inventory management, distribution and routing decisions are determined simultaneously, implementing a vendor-managed inventory strategy, a difficult combinatorial optimization problem must be solved to determine which customers to visit, how much to replenish, and how to route the vehicles around them. This is known as the inventory-routing problem. We analyze a distribution system with o...

Robust Inventory Management Using Tractable Replenishment Policies

We propose tractable replenishment policies for a multi-period, single product inventory control problem under ambiguous demands, that is, only limited information of the demand distributions such as mean, support and deviation measures are available. We obtain the parameters of the tractable replenishment policies by solving a deterministic optimization problem in the form of second order cone...