W e show simple yet optimal results to update the inventory/capacity levels, expected profit, fill rates, and service levels of substitutable resources in response to an updating of the mean demand forecasts for the resources. We find that a change in the mean demand of one resource does not affect the optimal inventory level of any other resource. The results are obtained for demands with loca...

Inventory control is important in supply chain management. A great deal of research efforts have been devoted to it over a few decades. Previous researches always assume that the lead time is an exogenously parameter, and the unmet demand is backordered. However, these assumptions may not suit to the real environment. In this paper, a mathematical model regarding inventory control is set up for...

In financial economics in general the objective function expresses the risk preferences of the decision maker, see for example the mean variance approach in portfolio theory. Only recently in inventory management instead of maximizing expected profit or minimizing expected cost risk-averse objective functions have been used for determining the optimal order quantity. Examples are the exponentia...

This paper presents a hybrid Decision Support System (DSS) for slow moving spare parts joint replenishment in a nuclear power plant. In this study, we integrate the fuzzy and grey theory-based spare parts criticality class evaluation model to confirm the target service level, and the web-based joint replenishment DSS to obtain reasonable purchase parameters that can be helpful for reducing tota...

Dissertation Abstract This dissertation focuses on the perishable inventory theory with health-care applications, the multi-variate input modeling for stochastic simulations, and temporal and bivariate dependence modeling for interarrival and service times of the queueing systems. This disser-tation contributes to the perishable inventory theory by introducing the critical level policy for the ...

We study the important problem of how a supplier should optimally share the consequences of demand uncertainty (i.e., the cost of inventory excesses and shortages) with a retailer in a two-level supply chain facing a finite planning horizon. In particular, we characterize a multiperiod contract form, the promised lead-time contract, that reduces the supplier’s risk from demand uncertainty and t...

Although take-it-or-leave-it pricing is the main mode of operation for many retailers, a number of retailers discreetly allow price negotiation when some haggle-prone customers ask for a bargain. At these retailers, the posted price, which itself is subject to dynamic adjustments in response to the pace of sales during the selling season, serves two important roles: (i) it is the take-it-or-lea...

The aim of this paper is to assess the service levels from different point of views by modeling the inventory and warehouse variables. For this reason a main model has been formed and this model has been solved by dividing into inventory sub-model and warehouse sub-model. For the sake of effective implementation of ‘order-picking ‘, the warehouse has been divided into two different areas. These...

We study an inventory system that consists of two demand classes. The orders in the first class need to be satisfied immediately, whereas the orders in the second class are to be filled in a given demand lead–time. The two classes are also of different criticality. For this system, we propose a policy that rations the non–critical orders. Under a one-for-one replenishment policy with backorderi...

The work described in the literature on inventory and supply chain management has advanced greatly over the last few decades and now covers many aspects and challenges of applied supply chain management. In this paper we describe an approach that combines many of these academic aspects in a practical way to manage the spare parts logistics at a German automobile manufacturer. The basic problem ...