This paper considers a single-product inventory system that serves both online and traditional customers. Demands from both channels follow independent stationary Poisson processes. Traditional customers have their demands fulfilled upon arrival if the retailer has stock on hand; otherwise the demand is lost. However, online customers place their orders in advance, and delivery is flexible in t...

We study cooperation strategies for companies that continuously review their inventories and face Poisson demand. Our main goal is to analyze stable cost allocations of the joint costs. These are such that any group of companies has lower costs than the individual companies. If such allocations exist they provide an incentive for the companies to cooperate. We consider two natural cooperation s...

A disaster inventory system is considered in which two substitutable items are stored for disaster management. In the event of disaster management, a particular product may become stock-out and the situation warrants that a demand for the particular product during its stock-out period may be substituted with another available similar product in the inventory. From the utility point of view, con...

This paper addresses an inventory control problem when common components are allowed and the goal is to minimize the expected units shortage subject to a budget constraint. A two-level assemble-to-order product structure is analyzed when the demands for two end products follow independent mixtures of Erlang distributions. Closed form expressions for the objective function under various scenari...

A well-studied problem in the literature on airline revenue (or yield) management is the optimal allocation of seat inventory among fare classes given a demand distribution for each class. In practice, the seat allocation decisions of one airline affect the passenger demands for seats on other airlines. In this paper we examine the seat inventory control problem under both horizontal competitio...

Firms are increasingly interested in transport policies that enable a shift in cargo volumes from road (truck) transport to less expensive, more sustainable, but slower and less flexible transport modes like railway or inland waterway transport. The lack of flexibility in terms of shipment quantity and delivery frequency may cause unnecessary inventories and lost sales, which may outweigh the s...

This paper considers a single-period product inventory control in a distributed supply chain, which is composed of one manufacturer and one retailer and operates in the environment of uncertain market demand. A Stackelberg model with fuzzy demand is first developed, with using a L–R fuzzy number with a general membership function to depict the fuzzy market demand, and through adopting the weigh...

In this paper, we examine the nature of optimal inventory policies in a system where a retailer manages substitutable products. We first consider a system with two products 1 and 2 whose total demand is D and individual demand proportions are p and (1-p). A fixed proportion of the unsatisfied customers for 1(2) will purchase item 2 (1), if it is available in inventory. For the single period cas...

The objective of this paper is to develop an inventory model with fuzzy inflation and multi variant demand rate. A new demand rate introduced which depends on price, quality and time. Planning horizon is random in nature for manufacturing company. Production rate is taken to be flexible in nature which depends on the technology frequency, capital investment and its elasticity and number of labo...

We present two results to aid the numerical solution of the notoriously di¢ cult discrete-time inventory model with stochastic demands, a constant leadtime, and lost sales. First, we show that the e¤ective state space is a relatively manageable compact set. Second, we show that the optimal cost is increasing in the leadtime, and we use this fact to construct a good lower bound on the optimal-co...