We consider a two-stage production-inventory system. Each stage is made of an exponential production server and an output inventory. The downstream inventory faces a Poisson demand and each inventory receives product returns that can be either accepted or rejected. The objective is to find a production/admission policy minimizing the expected discounted costs over an infinite horizon. We consid...

Seasonal items like fruits, fish, winter cosmetics, fashion apparel, etc. generally exhibits different demand patterns at various times during the season. Production and inventory planning must reflect this property for cost effectiveness and optimization of resources. This paper presents two production-inventory models for perishable seasonal products that minimize total inventory costs. The m...

This paper considers a problem of integrated decision-making for job scheduling and delivery batching wherein different inventory holding costs between production and delivery stages are allowed. In the problem, jobs are processed on a facility at a production stage and then delivered at the subsequent delivery stage by a capacitated vehicle. The objective is to find the coordinated schedule of...

This paper studies a two-echelon supply chain with stochastic and discrete consumer demand, batch order quantities, periodic inventory review, and deterministic transportation times. Reorder point policies manage inventories at every location. Average inventory, backorders and fill rates are evaluated exactly for each location. Safety stock is evaluated exactly at the lower echelon and a good a...

The use of VMI at Wal-Mart on a large scale has attracted a great deal of attention in the industrial world. In a VMI program, the supplier assumes control of the inventory management for one or more retailers (Fry, 2002). The supplier monitors the inventory level at the retailers and makes the decisions related to the quantities of replenishment and the timing of shipments to the retailers. It...

a r t i c l e i n f o Keywords: Stochastic dynamic programming Risk-reward heuristic Mean–variance analysis Efficient frontier analysis Inventory management Traditionally inventory management models have focused on risk-neutral decision making with the objective of maximizing the expected rewards or minimizing costs over a specified time horizon. However, for items marked by high demand volatil...

this paper considers the fuzzy inventory model for deteriorating items for power demand under fully backlogged conditions. we define various factors which are affecting the inventory cost by using the shortage costs. an intention of this paper is to study the inventory modelling through fuzzy environment. inventory parameters, such as holding cost, shortage cost, purchasing cost and deteriorati...

We investigate a two-stage serial supply chain with stationary stochastic demand and fixed transportation times. Inventory holding costs are charged at each stage, and each stage may incur a consumer backorder penalty cost, e.g. the upper stage (the supplier) may dislike backorders at the lower stage (the retailer). We consider two games. In both, the stages independently choose base stock poli...

Classic inventory models use average cost functions. It is generally accepted that these models should account for the time value of money. They do so not by considering the timing of cash-flows, but by including opportunity costs. The Net Present Value (NPV) framework has long been used to compare these models with. We formalise NPV Equivalence Analysis (NPVEA) under various payment structures...

We consider a two-stage supply chain under centralized control. The downstream facility faces discrete stochastic demand and passes supply requests to the upstream facility. The upstream facility always meets the supply requests from downstream. If the upstream facility cannot meet the supply requests from inventory on hand, the shortage must be filled by expediting, which will incur per unit a...