A newsboy model in which a vendor has a limited budget to procure the required items is developed. It is assumed that the manufacturer will either sell the items to the vendor outright or offer the items to the vendor with return policy. In the latter case, the manufacturer buys back from the vendor the unsold items at the end of the selling season. This study considers one item with budget con...

Aimed at the possibility of stock-out of the traditional retail channel under stochastic demand in a dual-channel supply chain, we propose a cooperative inventory strategy, in which the excess demand of the traditional retail channel is complemented by the excess inventory of the manufacturer’s direct channel through transshipment. We establish a newsboy model to analyse each supply chain membe...

The aim of the present paper is to show how the statistical inference equivalence principle (the idea of which belongs to the authors) may be employed in the particular case of finding the effective statistical solutions for the multi-product newsboy problems with constraints. To our knowledge, no analytical or efficient numerical method for finding the optimal policies under parameter uncertai...

A style dress outlet usually purchases products from multiple suppliers with different cost, quality and selling price. It is assumed that some suppliers will sell their goods to the buyer outright, while some other suppliers will offer return policy for items unsold. In the latter case, the supplier buys back from the buyer the unsold items at the end of the selling season. The purpose of this...

We consider a single-item, periodic-review, serial, multi-echelon inventory system, with linear inventory holding and penalty costs. In order to facilitate shipment consolidation and capacity planning, we assume the system has implemented periodic batching: each stage is allowed to order at given equidistant times. Further, for each stage except the most downstream one, the reorder interval is ...

We demonstrate the importance of using a sufficiently long time horizon analysis when modeling inventory systems subject to supply disruptions. Several publications use singleperiod newsboy models to study supply disruptions, and we show that such models underestimate the risk of supply disruptions and generate sub-optimal solutions. We examine a firm with an unreliable supplier that is subject...

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the product rate variation problem minimizes the variation in the rate at which different models of a common base product are produced on the assembly lines with the assumption of negligible switch-over cost and unit processing time for each copy of each model. the assumption of significant setup and arbitrary processing times forces the problem to be a two phase problem. the first phase determ...