In this paper, we consider numerous inventory control problems for which the base-stock policies are known to be optimal and we propose stochastic approximation methods to compute the optimal base-stock levels. The existing stochastic approximation methods in the literature guarantee that their iterates converge, but not necessarily to the optimal base-stock levels. In contrast, we prove that t...

This paper is concerned with the coordination of inventory control in threeechelon serial and distribution systems under decentralized control. All installations in these supply chains track echelon inventories. Under decentralized control the installations will decide upon base stock levels that minimize their own inventory costs. In general these levels do not coincide with the optimal base s...

There exists controversy on the superiority of logistics control systems. In this paper, we propose a unified framework for analyzing and comparing of production control mechanisms. KANBAN, CONWIP and Base-stock control systems are focused on and analyzed as three well-known examples of production control systems. The periodic behavior of a token transaction system is used. By using the theory ...

All intensively studied and widely applied inventory control policies satisfy demand in accordance with the First-Come-First-Served (FCFS) rule, whether this demand is in backorder or not. Interestingly, this rule is sub-optimal when the fill-rate is constrained or when the backorder cost structure includes fixed costs per backorder and costs per backorder per unit time. In this paper we study ...

Supply chains in industry have a very complex structure. The influence of many parameters is not known. Therefore the control of the orders, material flow and stock is rather difficult. In order to recognize the basic relationships between the parameters, a very simple model was set up. It consists of 4 identical stages. In all stages the stock is closed-loop controlled to a nominal stock. Ther...

Rapidly rising stock prices in the 1990s raised worries about potential inflationary or destabilizing effects. The use of initial margin debt requirements by the Federal Reserve was proposed to reduce the run-up in stock prices. This paper evaluates the likely impact of margin debt requirements on stock valuations. The results suggest that higher margin requirements would have had no impact on ...