An interesting class of production/inventory control problems considers a single product and a single stocking location, given a stochastic demand with a known non-stationary probability distribution. Under a widely-used control policy for this type of inventory system, the objective is to find the optimal number of replenishments, their timings and their respective order-up-to-levels that meet...

For large commercial airlines, efficiently setting and updating seat allocation targets for each passenger category on each multi-leg flight is an extremely difficult problem. This paper presents static and dynamic models of airline seat inventory control for multi-leg flights with multiple fare classes, which allow one to maximize an expected contribution to profit. The dynamic model uses the ...

A well-known method of inventory control is the reorder-point/order-quantity system, or (r, q) system, where an order of constant size q is placed whenever the inventory position (that is, stock on hand plus on order minus backorders) drops to a fixed reorder point r. Zipkin (1986) proves that, when stockouts are backordered, the average outstanding backorders, denoted by B(q, r), is a convex f...

This paper describes the impact of two different information sharing strategies – decentralized and centralized information – combined with two inventory control policies – min-max and stock-to-demand inventory control – on the bullwhip effect. To investigate and measure this impact, simulation models are developed using the Arena 5.0 software package for a four-stage supply chain, consisting o...

Like the majority of the university establishments in the former USSR , Al Farabi university functions, for historical reasons, according to a very centralized model: this model imposes significant collections of information and permanent data exchanges which are done by heavy, complex procedures and often not very reliable. The absence of global views and management reports as well as slowness...

AGGREGATION AND DISAGGREGATION IN MARKOV DECISION MODELS FOR INVENTORY CONTROL

In recent years, the rapid technological advancements, the increased economic uncertainty, and the globalization of economic activities have resulted in fierce competition, and more sophisticated and demanding customers. These characteristics of the new economic environment are translated to short product life cycles, increased demand for customized products, and quick response to customers’ an...

Production and inventory management are two interconnected concepts that crucial to the success of any physical product-driven organization. consists planning, coordinating, regulating manufacturing process guarantee things produced effectively, on schedule, in sufficient numbers. This often entails managing production resources such as people, materials, equipment fulfill targets while minimiz...