dynamic inventory planning with unknown costs and stochastic demand

Dynamic Inventory Planning with Unknown Costs and Stochastic Demand

Generally ordering policies are done by two methods, including fix order quantity (FOQ) and fix order period (FOP). These methods are static and either the quantity of ordering or the procedure of ordering is fixing in throughout time horizon. In real environments, demand is varying in any period and may be considered as uncertainty. When demand is variable in any period, the traditional and st...

Multi-product inventory planning with downward substitution, stochastic demand and setup costs

In this paper we consider a single period multi-product inventory problem with stochastic demand, setup cost for production, and one-way product substitution in the downward direction. We model the problem as a two-stage integer stochastic program with recourse where the first stage variables determine which products to produce and how much to produce, and the second stage variables determine h...

Dynamic Facility Location with Stochastic Demand

Determination of facilities, such as factories or warehouses, location and availability conditions is one of the important and strategic decisions for an organization to make. Transportation costs that form a major part of goods price are dependent to this decision making. There are verity of methods have been presented to achieve the optimal locations of these facilities which are generally de...

Joint pricing, inventory, and preservation decisions for deteriorating items with stochastic demand and promotional efforts

This study models a joint pricing, inventory, and preservation decision-making problem for deteriorating items subject to stochastic demand and promotional effort. The generalized price-dependent stochastic demand, time proportional deterioration, and partial backlogging rates are used to model the inventory system. The objective is to find the optimal pricing, replenishment, and preservation t...

Stochastic inventory control with partial demand observability

Replenishment Policies for Multi-Product Stochastic Inventory Systems with Correlated Demand and Joint-Replenishment Costs

T his study analyzes optimal replenishment policies that minimize expected discounted cost of multi-product stochastic inventory systems. The distinguishing feature of the multi-product inventory system that we analyze is the existence of correlated demand and joint-replenishment costs across multiple products. Our objective is to understand the structure of the optimal policy and use this stru...