Most analyses of make-to-stock production control assume that either all orders are eventually met (complete backordering) or that no customers are willing to wait (lost sales). We consider a more nuanced model of customer behavior, where the fraction of potential customers who place orders depends on the current backlog, and hence the lead time. A continuous one-part-type, single machine model...

This study develops a fuzzy multi-objective linear programming (FMOLP) model for solving the multi-product aggregate production planning (APP) decision problem in a fuzzy environment. The proposed model attempts to minimize total production costs, carrying and backordering costs and rates of changes in labor levels considering inventory level, labor levels, capacity, warehouse space and the tim...

This paper studies dynamic inventory and pricing decisions for a set of substitutable products over a finite planning horizon. We present a general stochastic, price-dependent demand model that unifies many commonly used demand models in the literature. Unsatisfied demands are backlogged. There are linear purchasing, inventory-holding, and backordering costs. The objective is to maximize the to...

W e consider firms that feature their products on the Internet but take orders offline. Click and order data are disjoint on such non-transactional websites, and their matching is error-prone. Yet, their time separation may allow the firm to react and improve its tactical planning. We introduce a dynamic decision support model that augments the classic inventory planning model with additional c...

We consider a continuous-review two-echelon distribution network with one central warehouse and multiple local stock points, each facing independent Poisson demand for one item. Demands are fulfilled from stock if possible and backordered otherwise. We assume base stock control with one-for-one replenishments and the goal is to minimize the inventory holding and backordering costs. Although thi...

The bullwhip effect, a well known phenomenon occurring in business activity where the demand information is not fully shared among the members of supply chain, conducts the upstream manufacturer to excessively anticipate the demand capacity of the downstream retailer. The manufacturer improperly decides the amount of the products not only to raise the inventory cost on the way of poorly handlin...

We consider an optimization problem for a multiclass queueing model of a decentralized production-distribution system: A single server can produce a variety of products, and completed units pass through an infinite server delay node on their way to a warehouse inventory. Each product has its own warehouse, demand for each product is satisfied by its associated inventory, and unsatisfied demand ...