This paper studies an inventory policy for a retailer who orders his products from a supplier whose deliveries only partially satisfy the quality requirements. We model this situation by an infinite-horizon periodic-review model with binomial random yield and positive lead time. We propose an orderup-to policy based on approximating the inventory model with unreliable supplier by a model with a...

In this paper, we use market segmentation approach in multiproduct inventory production system with deteriorating items. The objective is to make use of optimal control theory to solve the production inventory problem and develop an optimal production policy that maximize the total profit associated with inventory and production rate in segmented market. First, we consider a single production a...

Stock rationing is an inventory policy that allows differential treatment of customer classes without using separate inventories. In this paper, we propose a dynamic rationing policy for continuous review inventory systems, which utilizes the information on the status of the outstanding replenishment orders. For both backordering and lost sales environments, we conduct simulation studies to com...

today, the effective inventory management plays an important role in the success of the organizations in the new business environment. it is not clearly possible for the organizations that store hundreds of inventory items to economically design an inventory management policy for each inventory item separately. moreover, various inventory items may play quite different roles in the business of ...

In this paper, an (s, S) policy is determined by using a simulation-optimization approach for periodic review inventory system at pharmacy department of major hospital in Thailand. The simulation, which imitates the behavior, constructed on spreadsheet, while cyclic coordinate method with golden section search adopted as optimization algorithm. Solutions policy's parameters from algorithm are e...

There are many evidences that people tend to overweight low-probability events and underweight highprobability events. This risk attitude is generally expressed as an inverse-S shaped weighting function. This paper considers a risk-averse inventory manager who operates a continuous-review inventory system subject to supply disruption risk. Both Zero-Inventory-Order (ZIO) and Non-ZIO policies ar...