We propose a novel approach to optimum inventory control by modeling a commodity trader’s inventory investment as a portfolio of forward commitments taking explicit account of the dynamics of demands, costs and prices in open markets. We apply the robust real-asset martingale valuation methodology to derive a closed-form solution for the inventory value and a simple and intuitive optimality con...

Companies competing in today’s global economy are challenged by two critical yet conflicting issues related to their supply chains. On one hand, they are under ongoing pressure to reduce operational and inventory costs, which requires keeping inventory levels low. On the other hand, they must achieve a high customer service level by having inventory available when and where the customer wants i...

This paper addresses a new mixed integer nonlinear and linear mathematical programming economic lot sizing and scheduling problem in distributed permutation flow shop problem with number of identical factories and machines. Different products must be distributed between the factories and then assignment of products to factories and sequencing of the products assigned to each factory has to be d...

In the reverse supply chain inventory theory, inventory models are concerned with the demand of reusable parts, stock replenishment, ordering cycle, delivery lead time, number of disassembled products, ordering costs. The particularity of these models consists in the occurrence of high uncertainties of the quantity and quality of the returned products and resulting parts. To overcome the proble...

in this paper, the distribution network for multi-level supply chain has been studied. products produced in factories are sent to customers through warehouses and distribution centers based on specific demands. warehouses as holding inventory facilities are located close to factories and the distribution centers are placed in the most accessible locations for services near customers. each item ...