In practice, demands for items are often correlated with each other because of cross-selling effects. Traditional inventory models hold the assumption that demands are independent, which may lead to the risk of misestimating the inventory cost of associated items. This paper addresses a multi-item inventory system where demands for some minor items are correlated with that for a major item. Bec...

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...

Consider multiple companies that continuously review their inventories and face Poisson demand. We study cooperation strategies for these companies and analyse if there exist allocations of the joint cost such that any company has lower costs than on its own; such allocations are called stable cost allocations. We start with two companies that jointly place an order for replenishment if their j...

In this paper we analyze a continuous review finite capacity production-inventory system with two products in inventory. With stochastic order quantities and time between orders, the model reflects supply chain that operates an environment high levels of volatility. The inventory is replenished using independent order-up-to (s, S) policy or can-order c, joint replenishment which endogenously de...