T paper studies how judicious resource allocation in networks mitigates risk. Theory is presented for general utility functions and mean-variance formulations and is illustrated with networks featuring resource diversification, flexibility (e.g., inventory substitution), and sharing (commonality). In contrast to single-resource settings, risk-averse newsvendors may invest more in networks than ...

Nowadays, Companies have to deal with an uncertain demand which is more difficult to handle when it has a non-stationary pattern. Simultaneous decrease of customer service and increase of stock costs are the most significant effects of such demand uncertainty. To deal with this issue, inventory optimization models must be adapted to cover a multi-echelon network structure and to consider altern...

Quality of decisions in inventory management problems depends on accuracy of parameter estimates used for decision making. In many situations, error in decision making is unavoidable. In such cases, understanding sensitivity of objective function to sub-optimal decisions is necessary for better implementation of the model. We study sensitivity of expected demand-supply mismatch cost to sub-opti...

We make a novel connection between an energy-efficient wireless transmission scheduling problem and a multi-period, multi-item inventory control problem with stochastic convex ordering costs, deterministic demands, and a joint budget constraint. In the special case of a single item, we show that a state-dependent modified base-stock policy is optimal when the stochastic ordering costs are linea...

The integration of marketing and demand with logistics and inventories (supply side of companies) may cause multiple improvements; it can revolutionize the management of the revenue of rental companies, hotels, and airlines. In this paper, we develop a multi-objective pricing-inventory model for a retailer. Maximizing the retailer's profit and the service level are the objectives, and shorta...

Inventory management is an important thing to be considered in order run the activities of a company smoothly. By considering deterioration factor, partial backlogging policy and different type demand functions, we develop mathematical model for multi-item inventory system. In this paper, three models with constant deterioration, backlogging, various functions are developed. We consider invento...

In this paper, we present a unified approach to study a class of cooperative games arising from inventory centralization. The optimization problems corresponding to the inventory games are formulated as stochastic programs. We observe that the strong duality of stochastic linear programming not only directly leads to a series of recent results concerning the non-emptiness of the cores of such g...

Supply chain management (SCM) is an emerging field that has commanded attention and support from the industrial community. Demand forecast taking inventory into consideration is an important issue in SCM. There are many diverse inventory systems, in theory or practice, which are operated by entities (companies) in a supply chain. In order to increase supply chain effectiveness, minimize total c...

We address in this paper the mid-term planning of chemical complexes with integration of stochastic inventory management under supply and demand uncertainty. By using the guaranteed service approach to model the time delays in the chemical flows inside the chemical process network, we capture the stochastic nature of the supply and demand variations, and develop an equivalent deterministic opti...

We analyze a joint pricing and inventory control problem for a perishable product with a fixed lifetime over a finite horizon. In each period, demand depends on the price of the current period plus an additive random term. Inventories can be intentionally disposed of and those that reach their lifetime have to be disposed of. The objective is to find a joint pricing, ordering, and disposal poli...