Introduction. We study a class of capacitated stochastic lot-sizing inventory control problems with stochastic, non-stationary and correlated demands that evolve over time. Economies of scale and capacity constraints exist in many practical scenarios. However, models with fixed ordering costs and capacity constraints are typically computationally intractable, and even the structure of the optim...

The cooperation strategy followed by the buyer and vendor results is an overall effect on the saving percentage along with the impact of inventory costs such as holding cost, fixed and linear backorder cost. This paper deals with buyer vendor incentive inventory model with fixed lifetime product with fixed and linear back order cost. A distinguishing feature of this model is that both fixed and...

Interdependence of minor ordering costs occurs in joint replenishment of inventory when the cost of placing an item in an order depends on which other items are also in the order. In this paper, we propose an evolutionary algorithm (EA) for joint replenishment of inventory which allows for the interdependence of minor ordering costs. Since solutions to the joint replenishment problem (JRP) can ...

Sustainability throughout supply chains is gaining more importance and re-planning inventory operations can help companies curb emissions. In this study, we present two bi-objective integrated continuous review inventory control and transportation models with less-than-truckload and truckload carriers. Solution methods to approximate the Pareto Frontiers are proposed. Numerical studies illustra...

This paper analyzes an integrated inventory control and transportation problem with environmental considerations. Particularly, explicit transportation modeling is included with inventory control decisions to capture per truck costs and per truck capacities. Furthermore, a carbon cap constraint on the total emissions is formulated by considering emission characteristics of various trucks that c...

This paper studies stochastic inventory problems with unbounded Markovian demands, ordering costs that are lower semicontinuous, and inventory/backlog (or surplus) costs that are lower semicontinuous with polynomial growth. Finite horizon problems, stationary and nonstationary discounted cost in nite horizon problems, and stationary long-run average cost problems are addressed. Existence of opt...

Theoretical models have been ambiguous on the relationship between industry competition and inventory holdings of manufacturing firms. Facing competition, on the one hand, firms may desire to hold more inventory to avoid losing sales to competitors; on the other hand, firms strive to improve inventory turns to control costs and stay competitive. Using U.S. Census data on manufacturing industrie...

The unanticipated shortening of a product’s life cycle can have a dramatic effect on inventory costs. Where the cause is physical decay or an unexpected decline in demand, producers can quickly find themselves quickly holding inventory that has degraded value or no value at all. In this research, we propose that an inventory system with this characteristic can be modeled as a Markov Process wit...

Managing inventories is crucial to the objective of minimizing supply chain costs. This paper presents an approach for setting inventory norms in context of a real-life case of an industry which practices Vendor Managed Inventory (VMI). The role of warehouses and the inventories held by them becomes significant in such an environment. This paper presents a two-phase approach to determine variou...