We develop an equilibrium business cycle model where nonconvex delivery costs lead producers of final goods to follow generalized (S,s) inventory policies with respect to intermediate goods. When calibrated to match the average inventory-to-sales ratio in postwar U.S. data, our model reproduces two-thirds of the cyclical variability of inventory investment. Moreover, inventory accumulation is s...

Sheffield (2016) proposed an inventory accumulation model with two types of products which encodes the critical Fortuin-Kasteleyn model on a random planar map, and showed that a two-dimensional inventory accumulation trajectory in the discrete model scales to a correlated planar Brownian motion. In this work, we generalize the inventory model to k types of products for any integer k ≥ 2, and pr...

Modern business environment focuses on improving the operational efficiency of supplier, retailer and customers through integrating their inventory. Although a smoothly running integrated inventory system is ideal, the reality is to deal with imperfectness in transportation. In actual production environments, inventory items are not perfect and defectiveness occurs in random process.  In this p...

Customer relationship is increasingly influencing the performance of inventory management in a supply chain, and customer retention or migration directly affect the number of customer orders and demands as well as the inventory level. Therefore, the aim of this paper is to propose a customer satisfaction inventory (CSI) model that incorporates customer relationship management into an inventory ...