We study a periodically reviewed, serial inventory system in which excess demand from external customers is lost. We derive elementary properties of the vector of optimal order quantities in this system. In particular, we derive bounds on the sensitivity (or, more mathematically, the derivative) of the optimal order quantity at each stage to the vector of the current inventory levels. Our analy...

In this paper, the authors attempted to develop a deterministic inventory model for deteriorating item under a very realistic and practical demand rate which depends upon power of time (Power demand pattern). Also in this study we consider that the item deteriorate after a fixed time period called life time and taking incremental holding cost. Effect of partial backlogging also taken in account...

We consider the classical joint pricing and inventory control problem with lost-sales and censored demand in which the customer’s response to selling price and the demand distribution are not known a priori, and the only available information for decision-making is the past sales data. Conventional approaches, such as stochastic approximation, online convex optimization, and continuum-armed ban...

This paper studies inventory management in a two echelon supply chain with stochastic demand and lost sales. The optimal policy is evaluated and compared with the competitive solution, the outcome of a game between a supplier and a retailer in which each ...rm attempts to maximize its own pro...t. It is shown that supply chain pro...t in the competitive solution is always less than the optimal ...

Inventory models with lost sales and large lead times have traditionally been considered intractable, due to the curse of dimensionality which arises from having to track the set of orders placed but not yet received (i.e. pipeline vector). Recently, Goldberg et al. (2012) laid the foundations for a new approach to solving these models, by proving that as the lead time grows large (with the oth...

We introduce a single location periodic review inventory control problem with lost sales and fractional lead times. We model the optimal inventory control problem as a stochastic dynamic program and analyze properties of the objective function as well as the optimal policy. We present upper and lower bounds on the optimal policy. These bounds can readily be used in easily computable heuristics....

This paper presents a discounted cash-flow approach to an inventory model for deteriorating items with the &#10two-parameter Weibull distribution. According to our proposed model, two shortages are considered: back-orders and lost-sales, &#10in which the back-order rate is a varying function of the time when the shortage happens. In general, the demand rate is a linear function of the selling p...

In today’s business transactions, it is frequently observed that a customer is allowed some grace period (permissible delay in payment) before settling the account with the supplier or producer. This policy is advantageous both for the supplier and customer since supplier attracts more customers and customer does not have to pay any interest during this fixed period either. In this paper, the r...

In this paper, a multi-product continues review inventory control problem within batch arrival queuing approach (MQr/M/1) is modeled to find the optimal quantities of maximum inventory. The objective function is to minimize summation of ordering, holding and shortage costs under warehouse space, service level, and expected lost-sales shortage cost constraints from retailer and warehouse viewpoi...