We develop the first approximation algorithm for periodic-review perishable inventory systems with setup costs. The ordering lead time is zero. The model allows for correlated demand processes which generalize the well-known approaches to model dynamic demand forecast updates. The structure of optimal policies for this fundamental class of problems is not known in the literature. Thus, finding ...

L-convexity, one of the central concepts in discrete convex analysis, receives significant attentions in the operations literature in recent years as it provides a powerful tool to derive structures of optimal policies and allows for efficient computational procedures. In this paper, we present a survey of key properties of L-convexity and some closely related results in lattice programming, se...

We study joint replenishment and clearance sales of perishable goods under a general finite lifetime and a last-in-first-out (LIFO) issuing rule, a problem common in retailing. We show that the optimal policies can be characterized by two thresholds for each age group of inventory: a lower one and a higher one. For an age group of inventory with a remaining lifetime of two periods or longer, cl...

s-This paper further extends the existing cost model for a fixed-life perishable product in a two-echelon inventory problem into the net profit model. The extended model is subsequently evaluated by comparing its results with those obtained from OptQuest, a commercial simulationoptimization package. Within a limited but reasonable time, the comparative results do not show a significant improvem...

ABSTRACT: We consider a periodic review inventory system for perishable items with lost sales. Demands arrive according to a Poisson process. The lifetime of each item is exponentially distributed and the procurement lead time is constant. This type of modeling is motivated by the recent application of the so called Time Temperature Technologies. With this technology, it is possible to detect a...

We apply the concept of multimodularity in three stochastic dynamic inventory problems in which state and decision variables are economic substitutes. The first is clearance sales of perishable goods. The second is sourcing from multiple suppliers with different leadtimes. The third is transshipment under capacity constraints. In all three problems, we establish monotone optimal polices with bo...

In this paper, using the maximum principle for analyzing dynamic cost, we propose a new twostage supply chain model of the manufacturing-assembly mode for high-tech perishable products supply chain and obtain the optimal conditions and results. On this basis, we further research the effect of localization of CODP on the total cost and the relation of CODP, inventory policy and demand type throu...

We consider the problem of shipping a set of products from a single origin (the vendor) to a common destination (the buyer) with the objective of minimizing the sum of the inventory and transportation costs, when a set of shipping frequencies is given and products are assumed to be perishable. We provide a mixed integer linear programming model for the problem and propose the modification of kn...

Dynamic pricing is a standard practice that sellers use for revenue management. With the vast availability of pricing and inventory data on the Internet, it is possible for consumers to become aware of the pricing strategies used by sellers and to develop strategic responses. In this paper, we study the strategic response of consumers to dynamic prices for perishable products. As price fluctuat...